The gap between the winners and losers was bigger than usual as Covid badly affected some stocks and benefited others. Photo / Getty Images
The gap between the winners and losers was bigger than usual as Covid badly affected some stocks and benefited others. Photo / Getty Images
In the year of Covid-19, the New Zealand sharemarket has staged a resilient and almost out-of-this-world performance, with a solid group of stocks reaching new highs.
When the S&P/NZX 50 Index increased 17.73 points or 0.14 per cent to a record 13,037.94 last Thursday – its third successive day ofrises – before closing for the Christmas break, the index had risen 13 per cent for the year.
That was above the long-term average of 10 per cent in a year – and the index came back from a seemingly devastating 30 per cent crash in late March when the Covid pandemic took hold and the country was heading into lockdown.
"We've had great year given the backdrop," said Mark Lister, head of private wealth research with Craigs Investment Partners. "We had the first and fastest bear market since the global financial crisis, and an economic recession.
"To have recovered as much as we have – clawing back the 30 per cent and then pushing on higher – I don't think anyone would be unhappy with that," he said. "Investors who held their nerve over February, March and April or did a bit of buying headed to Christmas feeling pretty happy."
An interesting feature of the year's trading so far has been the divergence between the winners and losers – the gap was bigger than usual as Covid badly affected some stocks and benefited others.
Pushpay, which has an online donor management system, is up 78.29 per cent (current price $1.80, it had a four for one share split); transport and logistics operator Mainfreight has increased 54.74 per cent ($65.93); Fisher and Paykel Healthcare has gained nearly 51 per cent ($34); and Meridian Energy has moved nearly 38 per cent ($7.20).
Sky Network Television is down 60.18 per cent (16.1c); Cinema software firm Vista Group has lost nearly 52 per cent ($1.66); retailer Kathmandu has shed nearly 45 per cent ($1.29); Air New Zealand is down 41.5 per cent ($1.785); Tourism Holdings has declined 23.17 per cent ($2.52); and a2 Milk has fallen 22.3 per cent ($12.06) after its recent earnings downgrade.
Air New Zealand, hampered by Covid-19, has fallen 41.5 per cent to $1.785 this year. Photo / Brett Phibbs
Lister said there was still plenty of buying opportunity across the market in 2021, particularly in the value stocks such as Mainfreight, Ebos Group, Ryman Healthcare, Summerset Group Holdings, Skellerup Holdings, Fisher and Paykel Healthcare, and Spark.
"If 2021 is the year of economic recovery, then longer-term interest rates – but not the official cash rate – may move a bit higher, and there is a risk for the likes of Mercury, Meridian and Contact who have been star performers," he said.
When the market closed for Christmas – it resumes trading on Tuesday – 13 stocks were sitting at or near new highs over the last two years of trading.
Mainfreight rose 93c or 1.43 per cent on Thursday to its high-pedestal of $65.93; Freightways gained 5c to $10.10 after doubling since its low of $5.04 on March 16; and Meridian Energy was unchanged at its record high of $7.20.
Cancer diagnostic firm Pacific Edge fell 4c from its elevated level of $1.23 after shooting from 27c a share on July 2. Actually, Pacific Edge is the year's best mover so far, up an impressive 897.65 per cent.
Others reaching new highs are:
• Skellerup Holdings at $3.49, up from a low of $1.40 on March 25.
• Online travel provider Serko at $5.92, it slumped to 89c on March 23.
• Summerset at $12.10 after more than tripling from its low of $3.71 on March 23.
• Fletcher Building at $5.71 after starting the year at $5.65
• Wind farm specialist Tilt Renewables at $6.10, majority owned by Infratil and part of the takeover attempt by AustralianSuper.
• The market's own NZX at $1.96.
• Rural services company PGG Wrightson, quietly rising to $3.29.
• Turners Automotive Group at $3.01, beating the previous high of $2.89 on January 17.
• Vital Healthcare Property Trust at $3.295, after lately completing further property investment deals.
Fisher and Paykel Healthcare has gained nearly 51 per cent to reach $34. Photo / File
There are another group of 13 stocks which aren't far from their highs:
• Contact Energy at $8.78, near the high of $8.98 on October 8, 2019.
• Medical consumables company Ebos fell 15c to $28.20 on Thursday from its previous day's high of $28.35.
• Utilities investor Infratil at $7.40, up from $6.08 after telling the market on December 9 that it had received a takeover bid from AustralianSuper - it hit its high of $7.54 on December 23.
• Retirement village operator Oceania Healthcare at $1.38 (3c off the high) after reaching 51c on March 20.
• Retailer Briscoe Group at $5.32 after starting the year at $4.40.
• Genesis Energy at $3.60, just short of its high of $3.65 on September 5, 2019.
• Media group NZME has reached new levels at 64c, after hitting 76c on November 17.
• Argosy Property at $1.54, just short of its high of $1.56 on December 7.
• Property for Industry at $2.91, with a high of $2.95 on October 21 and low of $1.61 on March 23.
• Stride Property at $2.34 after hitting $2.40 on January 31.
• Southport New Zealand at $7.70, near its high of $7.90 at October 18, 2019.
• Eftpos provider Smartpay Holdings at 73c, after reaching 76c on February 20.
• Electronics manufacturer Rakon at 55c, 3c off its December 16 high of 58c and recovering from 15c on March 14 – its growth over the past 12 months is 91.32 per cent.
