Market close: Dairy companies lead NZ sharemarket higher as Covid restrictions come off

a2 Milk's China-label infant milk formula registration has been renewed. Photo / Salty Dingo

Global marketer a2 Milk and its manufacturer Synlait have secured their sales presence in China as the New Zealand sharemarket opened the week on a positive note with a near half per cent gain.

The S&P/NZX 50 Index reached an intraday low of 11,759.18 points, but it had a sharp rise in the last half-hour matching session after the Government announced it was scrapping the Covid-19 Protection Framework or traffic light system.

The index finished 55.44 points or 0.47 per cent ahead at 11,813.21. There were 90 gainers and 49 decliners over the whole market on volume of 26.7 million share transactions worth $104.57m.

Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said ending the traffic light system would be good for the market and the economy.

"People can go about their business more easily. It may well benefit property companies which have seen an increase in office vacancies. Workplaces have changed forever but there may be more notices for people to come back to the office.

"If that's the case, there will be more people in cars and public transport and getting takeaways or eating in cafes at lunchtime. There will be retail benefits," Sullivan said.

In economic news, New Zealand had a net migration loss of 12,400 for the year ending July. Migrant arrivals were down 16 per cent to 52,100 compared with a year earlier and migrant departures were 64,500, down 7 per cent.

Synlait told the market that a2 Milk's China-label infant milk formula registration has been renewed. The five-year registration was due to expire in late September. Synlait will continue to make the formula and in late February next year it needs to transition to the new food safety legislation.

Synlait increased 4c to $3.52, and a2 Milk gained 18c or 2.89 per cent to $6.40. In addition, Synlait is working on re-registration under the new legislation and said this process would not impact on the current forecasted volumes of China-label formula.

Sullivan said having the registration extended and then getting the State Administration for Market Regulation licence early next year was a very large catalyst for both Synlait and a2 Milk.

Fonterra Shareholders' Fund was one of the day's biggest risers, gaining 18c or 5.75 per cent to $3.31. Last week the dairy co-operative upgraded its earnings to a mid-point 52c a share, compared with the previous forecast of 37.5c a share.

Fisher and Paykel Healthcare was up 29c to $20.49; Meridian gained 4c to $4.99; Mainfreight collected 90c to $74.40; Freightways increased 10c to $10.75; and Ebos Group closed 16c ahead at $40.15 after turning around from an intraday low of $39.43.
Transtasman fuel supplier Ampol was up $1.69 or 4.75 per cent to $37.25. Retailer The Warehouse Group increased 13c or 3.88 per cent to $3.48.

Marlin Global Fund rose 5c or 4.81 per cent to $1.09; SkyCity Entertainment was up 4c to $2.86; Restaurant Brands gained 5c to $8.20; Vista Group recovered 4c or 2.5 per cent to $1.64; T&G Global increased 9c or 3.45 per cent to $2.70; and Vulcan Steel added 17c or 1.94 per cent to $8.93.

Other gainers were Solution Dynamics, up 5c or 1.98 per cent to $2.57; Scales Corp collecting 6c to $4.90; Serko increasing 5c to $3.75; Turners Automotive improving 6c to $3.77; Gentrack increasing 5c or 3.7 per cent to $1.40; Smartpay rising 2.5c or 3.79 per cent to 68.5c; and Metro Performance Glass up 2c or 10 per cent to 22c.

Vector Energy declined 10c or 2.23 per cent to $4.39; Summerset Group decreased 15c to $11; Tourism Holdings was down 8c or 2.96 per cent to $2.62; and Sky TV gave up 5c or 2.08 per cent to $2.35.

Other decliners were Harmoney down 3c or 3.95 per cent to 73c; Bremworth shedding 2c or 3.45 per cent to 56c; and Cooks Coffee plunged 2c or 5 per cent to 38c.

Napier Port, gaining 9c to $3.15, has opened its $75m five-and-a-half-year bond offer with a minimum interest rate of 5.25 per cent a year. Napier will also accept over-subscriptions of $25m.

Malcolm Johns, who has led Christchurch Airport since 2014, has been appointed Genesis Energy chief executive to replace Marc England in March. Chief customer officer Tracey Hickman will be the interim CEO when England leaves in mid-October. Genesis' share price edged ahead 0.005c to $3.