Market close: NZ stocks nearing positive territory, Apple hits trillion-dollar mark

The S&P/NZX 50 was up 0.94 per cent.

The New Zealand sharemarket is very close to wiping out its deficit for the year after rising nearly 1 per cent while Synlait Milk hit an all-time low.

After a strong opening in Australia, the S&P/NZX 50 Index kicked into gear at lunchtime and closed at 11,463.49, up 106.5 points or 0.94 per cent.

The index began the week 0.9 per cent down for the year and is now just 0.06 per cent from entering positive territory.

The NZX index is having its sixth successive week of gains and apart from the three months ending September has made ground in five of the last six quarters.

There were 77 gainers and 56 decliners over the whole market on increased volumes of 37.4 million shares worth $112.57 million.

Across the Tasman, the S&P/ASX 200 Index had risen 1.77 per cent to 7186.5 points at 6pm NZ time.

In the United States, Apple became a $3 trillion company after gaining 2.11 per cent to US$193.42 ($315.47). The US major indices were mixed with the Nasdaq Composite the only one rising, up 0.31 per cent to 14,229.91 points.

Jeremy Sullivan, investment advisor with Hamilton Hindin Greene, said everything is quite rosy.

“The Federal Reserve is expecting a soft economic landing in the US and the expectation of lower interest rates there next year is buoying our market, bringing positive moves on the NZX.

“Weaker labour data in the US further cemented views of a potential rate cut by the Fed. The crude oil price continues to fall back, the latest global dairy trade auction was up 1.6 per cent and there’s an increase in house sales in Auckland,” Sullivan said.

In the auction, whole milk powder was up 2.1 per cent to US$3104 a metric tonne, skim milk powder gained 1.2 per cent to US$2671MT, and cheddar cheese rose 9.7 per cent to US$3986MT.

ASB chief economist Nick Tuffley said there are some early positive signs for the economy which looks like it is past the worst. The housing market and business confidence are on the rise.

However, growth is being propped up by migration and lagged impacts of higher interest rates are still flowing through. Per capita gross domestic product is likely to edge down while unemployment rises.

Tuffley said inflation is gradually falling but interest rates are likely to remain high throughout next year. It will be late in the year before inflation gets back to the 1-3 per cent target.

He cautioned that the global environment remains soggy, with added risks of widening military and political conflict, and China’s underwhelming post-Covid rebound.

Synlait, coming out of the NZX top 50, was down 9c or 7.63 per cent to $1.09 for the first time in its 20 years as a listed company. Its peak was $12.80 on August 1, 2018.

Sullivan said Synlait has some well-known debt repayments due next year. It is carrying net debt of $413.5m, which had increased 21 per cent in the last financial year.

Fisher and Paykel Healthcare was up 37c to $23.57; Mainfreight added 75c to $70; Freightways increased 10c to $8.36; Spark collected 6.5c to $5.17; Fletcher Building gained 5c to $4.69; a2 Milk picked up 6c to $4.48; and Infratil collected 18c or 1.82 per cent to $10.08.

Energy companies: Mercury increased 14c or 2.28 per cent to $6.28, Meridian was up 10c or 1.92 per cent to $5.30; and Contact gained 13c to $7.83.

Property companies: Stride was up 3c or 2.31 per cent to $1.33; Vital Healthcare Trust was down 4.5c or 2.13 per cent to $2.065; and Argosy Property shed 2c or 1.83 per cent to $1.07.

Transtasman fuel supplier Ampol rose $2.09 or 6.06 per cent to $36.60; Heartland Group was up 3c or 1.88 per cent to $1.63; Eroad increased 3c or 3.53 per cent to 88c; Accordant Group gained 2c or 2.11 per cent to 97c; and Blackpearl Group added 3c or 6.12 per cent to 52c.

Turners Automotive was down 9c or 1.9 per cent to $4.65; Scott Technology declined 6c to $3.37; ikeGPS fell 3c or 5.66 per cent to 50c; and KMD Brands decreased 2c or 2.63 per cent to 74c.