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Home / Business / Markets

Market close: Blue chip stocks make further gains

By Graham Skellern
NZ Herald·
18 Mar, 2022 04:40 AM4 mins to read

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The index finished the week with an impressive gain of nearly 3 per cent. Photo / NZME

The index finished the week with an impressive gain of nearly 3 per cent. Photo / NZME

Blue chip stocks with solid earnings continued to make further gains after being battered over the past two months as the New Zealand sharemarket picked up another 1.5 per cent.

The S&P/NZX 50 Index had its third successive day of strong trading and rose 176.89 points or 1.47 to 12,175.85. The index finished the week with an impressive gain of nearly 3 per cent.

There were 97 gainers and 49 decliners over the whole market on volume of 129.16 million share transactions worth $685.99 million.

The day's trading was boosted in the last 45 minutes institutional matching session through the quarterly rebalancing of the NZX and FTSE Russell Indices.

EBOS Group topped the group with 2.74 million shares worth $102.64m changing hands and its share price declined 39c to $37.46m as it entered the FTSE global index.

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Auckland International Airport, rising 44.5c or 5.95 per cent to $7.93, had 9.04m shares worth $70.78m traded. And property company Investore gained 10c or 5.92 per cent to $1.79 after 7.24m shares worth $61.33m changed hands.

Other heavy traders were top 10 stocks Spark, Contact and Fisher and Paykel Healthcare.

Jeremy Sullivan, investment advisor with Hamilton Hindin Greene, said the market is having a broad rally.

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"It's nice to see so much green on the board after what is going on around the world. The market is sentiment driven rather than stock specific information, and Wall Street had another strong day," Sullivan said.

The Bank of Japan kept its official cash rate the same (at minus 0.1 per cent) and Bank of England increased 25 basis points (from 0.5 per cent to 0.75 per cent) – similar to the United States Federal Reserve the day before.

"Markets which had already priced in rates rises have been given the rally nod from these central banks. There may be changes in the banks' future modelling for interest rate rises because of the uncertainty over the Ukraine situation," Sullivan said.

"It will be interesting to see their commentary for the next 15-18 months as the sharemarket is always forward looking. There could be a slower rate of rises."

Beijing's support for Chinese companies listed in the US provided for a boost for technology and other stocks. The crude oil price went back over US$100, trading at nearly US$104 a barrel at 5.30pm NZ time.

At home, some of the battered blue chip stocks have provided buying value for investors wanting to replenish their portfolios.

Ryman Healthcare rose 25c or 2.63 per cent to $9.75; Meridian Energy gained 7c to $5.12; Mainfreight climbed $2.42 or 3.08 per cent to $81; Freightways collected 28c or 2.33 per cent to $12.31; and Summerset Group Holdings was up 47c or 4.08 per cent to $12.

Market leader Fisher and Paykel increased 8c to $27.60; Skellerup Holdings was up 16c or 2.76 per cent to $5.96; Pushpay Holdings rose 8c or 7.34 per cent to $1.17; and Vulcan Steel collected 22c or 2.37 per cent to $9.49.

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Arvida gained 6c or 3.95per cent to $1.58; Oceania Healthcare rose 5c or 4.95 to $1.06; a2 Milk increased 9c to $5.78; Scales Corporation was up 29c or 5.97 per cent to $5.15; and Scott Technology was up 10c or 3.31 per cent to $3.12.

Other energy companies Trustpower was up 9c to $6.74, and Vector increased 12c or 3.07 per cent to $4.03.

Property companies Precinct Properties increased 5.5c or 3.57 per cent to $1.595, Stride was up 6c or 3.05 per cent to $2.03; Property for Industry gained 8.5c or 3.15 per cent to $2.785; and Argosy was up 2.5c or 1.86 per cent to $1.37.

Fletcher Building was down 15c or 2.32 per cent to $6.32; Mercury Energy fell 6c to $5.80; and Vista Group declined 5c or 2.7 per cent to $1.80.

Sky Network Television has completed the sale of its Auckland Mt Wellington campus to Goodman Property Trust for $56m, and Sky TV's share increased 6c or 2.26 per cent to $2.71.

PGG Wrightson's chairman Rodger Finlay is retiring at the end of June and its share price declined 5c to $4.65.

New Zealand Oil & Gas, up 1c or 1.92 per cent to 53c, told the market that the ninth production well in the Indonesian Mahato oil field is completed and is producing 500 barrels a day. NZOG's subsidiary Cue Resources has a 12.5 per cent interest in Mahato.

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