Market close: NZ sharemarket striking more positive tone

Air New Zealand, gearing up for its busiest July in two years, increased 2.5c or 4.63 per cent to 56.5c. Photo / Brett Phibbs

The New Zealand sharemarket, gaining well more than one per cent for the second day running, has picked up a more positive tone emanating from strong offshore performances.

After a strong comeback on Wall Street on Friday night (NZ time), the S&P/NZX Index 50 Index climbed at the opening and held very firm, closing at 10,997.92 – up 183.99 points or 1.7 per cent. The index rose 1.27 per cent on Thursday, the last previous trading day.

There were 116 gainers and 27 decliners on the main board but volume was light with 28.28 million shares worth $113.39 million changing hands.

Mark Lister, head of private wealth research with Craigs Investment Partners, said the local market was playing catch-up after being closed on Friday for Matariki.

"Friday's showing in the US markets capped off a buoyant week. The US market overall was up 6.5 per cent while New Zealand's rose only 2.1 per cent," he said.

"Interest rates have come down a little and there has been weakness in the oil price. This has buoyed investors as inflation pressures may be softening. Some of the smaller and high-growth stocks led the charge here."

Asked if the markets had reached their bottom, Lister said: "That's the million-dollar question. We have fallen a fair way and I would say we are hopefully through the worst of it. But I wouldn't be surprised if we get more volatility."

In the US, the Dow Jones Industrial Average surged 823 points or 2.68 per cent to 31,500.68 and the Nasdaq Composite rose 3.34 per cent to 11,607.62. The S&P 500 had its biggest rise since May 2020, gaining 3.06 per cent to 3911.74.

Investors were more optimistic that a recession may be averted, and central banks may moderate their tightening initiatives if the economy is stalling.

Across the Tasman, the S&P/ASX 200 Index was up 1.93 per cent to 6705.8 points at 6pm NZ time.

At home, the smaller stocks springing to life were Eroad, up 6c or 3.87 per cent to $1.61; Heartland Group Holdings increasing 6c or 3.14 per cent to $1.97; Pacific Edge gaining 4c or 5.88 per cent to 72c and NZME rising 7c or 6.14 per cent to $1.21.

Air New Zealand, gearing up for its busiest July in two years, increased 2.5c or 4.63 per cent to 56.5c. Air New Zealand is relaunching 14 international routes in 16 days and will be operating at 60 per cent of its international capacity.

Other travel and leisure stocks Tourism Holdings was up 10c or 4.27 per cent to $2.44, Vista Group gained 5c or 3.09 per cent to $1.67; and SkyCity Entertainment increased 7c or 2.55 per cent to $2.82.

Market leader Fisher and Paykel Healthcare played its part in the newly found confidence, rising 47c or 2.38 per cent to $20.20. Ebos Group gained 54c to $40.45.

Dividend stocks Chorus was up 17c or 2.34 per cent to $7.542 and Spark increased 8c to $4.86.

Retirement village operators Ryman Healthcare gained 20c or 2.22 per cent to $9.20, and Summerset Group Holdings was up 17c to $9.72.

Skellerup Holdings rebounded 14c or 2.82 per cent to $5.10; Freightways rose 36c or 3.91 per cent to $9.57; a2 Milk was up 19c or 4.03 per cent to $4.86; Restaurant Brands collected 20c or 1.85 per cent to $11; and ANZ Banking Group gained 46c or 1.89 per cent to $24.75.

Among the energy stocks, Meridian was up 16c or 3.62 per cent to $4.58; Mercury gained 10c to $5.69; Genesis increased 7c or 2.66 per cent to $2.70; and Vector was down 8c or 1.85 per cent to $4.25.

Infratil increased 20c or 2.6 per cent to $7.90; Vital Healthcare Property collected 10c or 3.76 per cent to $2.76; Vulcan Steel picked up 29c or 3.45 per cent to $8.70; The Warehouse Group increased 7c or 2.1 per cent to $3.41; and Napier Port rose 12c or 4.4 per cent to $2.85.

Chemicals company DGL Group increased 20c or 7.09 per cent to $3.02 on the eve of delisting from the NZX and maintaining a primary listing on the ASX.

Among the decliners, PGG Wrightson decreased 10c or 2.2 per cent to $4.45; Scott Technology lost 8c or 2.68 to $2.90; Synlait Milk shed 6c or 1.89 per cent to $3.11; and Third Age Health Services was down 7c or 2.64 per cent to $.58.

New Zealand King Salmon Investments, up 0.005c or 2.38 per cent to 21.5c, told shareholders at the annual meeting the harvest this year will be about 5750 tonnes and operating earnings (ebitda) will result in a loss of $8m-$12m.

Medicinal cannabis company Cannasouth, up 1c or 2.78 per cent to 37c, has signed a three-year manufacturing agreement with main customer Harker Herbal Products.