Market close: NZME shares hit 14-month high

NZME hit a 14-month high after posting another 4c or 7.41 per cent gain to 58c. Photo / File

A powerful day on the Australian bourse failed to rub off completely on the New Zealand sharemarket which closed with a reasonable gain – albeit, there was light trading on both sides of the Tasman.

The S&P/NZX 50 Index was up 75.41 points or 0.64 per cent to 11,898.26, with 32.5 million shares worth $117.05 million changing hands. There were 83 gainers and 48 decliners over the whole market.

In Australia, the S&P/ASX 200 Index was up 145.6 points or 2.51 per cent to 5937.1 at 5.45pm.

Matt Goodson, managing director of Salt Funds Management, said the ASX was sold off very aggressively late on Friday following President Donald Trump's hospitalisation.

"We never got the sell-off that Australia had. And the news on Trump's health is slightly better than worse. United States futures are up 0.7-1 per cent, so there's a little bit of a global bounce in the markets."

"There's also a public holiday in Australia, except Victoria and Queensland, and we are in the middle of the school holidays. The trading is very thin on the ground and the New Zealand market is just drifting," said Goodson.

The NZX September statistics showed the top 50 index increased 7.5 per cent year-on-year, the total market capitalisation grew 7.3 per cent to $208.9 billion, and total capital raisings slipped 1.4 per cent to $2.21b in September and $12.66b for the year to date.

The two market heavyweights continued to make headway from earlier falls, Fisher and Paykel Healthcare gaining 75c or 2.26 per cent to $33.90 on trade worth $19.74m, and a2 Milk increasing 24c to $15.44 on $9.8m worth of trade.

The dual-listed banking stocks rose on the strong day in Australia, ANZ up 59c or 3.18 per cent to A$19.15 ($20.69) and Westpac up 60c or 3.33 per cent to A$18.64.

The retirement sector continued to flourish, with Ryman Healthcare climbing 22c to $14.72, Arvida Group increasing 4c or 2.30 per cent to $1.78 and Summerset Group gaining 5c to $9.10.

Contact Energy was up 14c to $7.07 but Meridian fell 6.5c to $4.905. Restaurant Brands climbed 37c or 3.11 per cent to $12.25, Fletcher Building rose 10c or 2.47 per cent to $4.15, Freightways hit the $8 mark with a gain of 15c, and Comvita gained 5c to $3.20.

Online travel provider Serko had a late turn, falling 10c or 2.1 per cent to $4.67 after rising 12c during the day.

Pushpay Holdings fell 34c or 3.82 per cent to $8.57, Chorus was down 11c to $8.49, and Auckland International Airport declined 6c to $7.30.

A revitalised NZME has risen more than 34 per cent over the past fortnight, after posting another 4c or 7.41 per cent gain to 58c, its highest point since August last year.

Shares in NZME rallied after San Francisco-based Osmium Partners said it had lifted its stake in the company to 13.2 per cent from 11.6 per cent.

Goodson said NZME has had years of pressure from structural change in the sector and maybe it is now coming out the other end.

The NZ Herald numbers picked up over the Covid crisis - the housing and automobile advertising will be helping - and papers like the New York Times have also done well, Goodson said.

Property for Industry is buying an Auckland Rosebank Rd industrial estate for $65.55m, and its share price rose 4c to $2.74. The estate comprises nine buildings with an annual rent of more than $3.4m.

Metro Performance Glass was the day's biggest mover, increasing 3.35c or 10.94 per cent to 35.5c.