Market close: Gold’s resurgence and A2 Milk hits 11-month high

A2 Milk chief executive David Bortolussi. Photo / Salty Dingo

The New Zealand sharemarket posted its third consecutive rise, albeit small, as a re-energised a2 Milk reached a 11-month high with another solid gain.

The S&P/NZX 50 Index traded strongly for most of the day but had a late dip and closed at 11,803.93, up 8.03 points or 0.07 per cent.

There were 77 gainers and 57 decliners on the main board with 23.83 million shares worth $105.52 million changing hands.

Greg Smith, head of retail with Devon Funds Management, said investors were feeling more confident after the Reserve Bank was less hawkish than feared and kept the official cash rate unchanged last week.

“They are now looking to the bank to officially ring the bell that interest rates have peaked – like in the United States – and give an indication when rates will start coming down.”

United States Federal Reserve chairman Jerome Powell told Congress that rates have peaked but the bank needed a bit more evidence that inflation is heading sustainably to its 2 per cent target before any cuts. This would happen this year but there’s no rush.

The major indices bounced back with Dow Jones Industrial Average gaining 0.2 per cent to 38,661.05 points; S&P 500 up 0.51 per cent to 5104.76; and Nasdaq Composite increasing 0.58 per cent to 16,031.54.

Gold is having a resurgence as an alternative investment, reaching a record high of US$2159 an ounce after climbing from US$1988.6 a month ago.

Bitcoin hit an intraday all-time high of US$69,210 before falling back to US$66,152. The cryptocurrency has risen 45 per cent this year.

In Australia the four major banks have also reached new peaks – CBA is trading at a record high; NAB, owner of BNZ, its highest post-global financial crisis in 2009; ANZ highest since 2017; and Westpac highest since 2015.

Smith said the banks have sailed through the period of high interest rates relatively unscathed with bad debt levels and provision lower than people expected.

At home, ANZ was up 42c to $31.30 and Westpac gained 14c to $28.84.

Global marketer a2 Milk increased 15c or 2.43 per cent to $6.33 and neared a previous high of $6.39 set on April 4 last year. The company has risen 40 per cent this year from $4.29 on January 16.

Smith said a2 Milk was one of the leading lights of the reporting season. “It is increasing market share in a shrinking market in China and has made product launches in the United States and is listed on Amazon as a premium product.”

Mercury Energy retreated 14.5c or 2.03 per cent to $7.005 after its record run, and Meridian was up 3c to $5.95.

Fisher and Paykel Healthcare declined 29c to $24.46; Summerset Group was down 25c or 2.22 per cent to $11; Hallenstein Glasson decreased 8c to $5.72; Seeka shed 9c or 3.23 per cent to $2.70; and The Warehouse gave up 3c or 2.26 per cent to $1.30.

Technology companies Vista Group was down 3c or 1.82 per cent to $1.62; ikeGPS declined 2c or 4.26 per cent to 45c; Smartpay Holdings decreased 3.5c or 2.35 per cent to $1.455; and Serko gained 5c to $4.

Auckland International Airport was up 8c to $8.13; Restaurant Brands increased 7c or 2.27 per cent to $3.15; Green Cross Health added 2c or 1.82 per cent to $1.12; Vital Healthcare Trust gained a further 3.5c to $2.105; Allied Farmers was up 2c or 2.63 per cent to 78c; and Winton Land added 4c to $2.35.

Tourism Holdings was down 3c to $3.34 after announcing the sale of its 14.14 per cent shareholding in Australian recreational vehicle rental operator Camplify Holdings for A$19.2m (NZ$20.56m).

Tower, down 0.005c to 70c, told the market that the Financial Markets Authority has filed civil proceedings over its self-reported failure to correctly apply multi-policy insurance discounts.

Tower said it has paid more than $9.26m to 58,900 customers for overcharging on premiums payable and remediation payments are continuing. Tower has identified a total of 65,000 customers due a refund.

Metro Performance Glass declined 0.002c or 1.82 per cent to 10.8c in the wake of a board shake-up with the number of directors being reduced from six to four. Chairman Peter Griffiths is stepping down, and he told the market: “Given the challenges the company faces, it is appropriate that I do my part to help the company save costs.” New director Shawn Beck has been appointed chairman.