NZ shares resume march higher as A2 hits record

A2 Milk rose 2.7 per cent to a record close of $17.48 on 502,000 shares. Photo / Supplied

New Zealand shares bounced back from yesterday's dip, as A2 Milk Co closed at a record with investors still upbeat about the milk marketing firm's outlook. Gentrack dropped to a six-week low after cutting its earnings guidance.

The S&P/NZX 50 Index increased 85.74 points, or 0.8 per cent, to a record 10,898.28. Within the index, 30 stocks rose, 15 fell, and five were unchanged. Turnover was $107.4 million.

A2 rose 2.7 per cent to a record close of $17.48 on 502,000 shares, less than its 90-day average of 723,000 shares. The NZX's biggest listed company hit an intraday high $17.57 this week having enjoyed a month of upbeat broker reports, including Morgans lifting its target price to A$15.35 from A$13.66 last Friday. Lyttelton Port cargo data yesterday supported that view. A2 was up 2.8 per cent at A$16.79 in late trading on the ASX.

"A notable feature today is the strength of A2. There was no real new news, but there was some decent shipment data out from Port of Lyttelton yesterday," said Matt Goodson, managing director at Salt Funds Management.

Synlait Milk, which supplies A2, increased 0.7 per cent to $9.69.

Other exporters also gained, with Pushpay Holdings up 2.1 per cent at $3.47, Fisher & Paykel Healthcare rising 2 per cent to $16.48, Vista Group International up by 0.7 per cent to $6.05 and Mainfreight up 0.6 per cent to $42.40.

New Zealand Refining led the market higher, up 2.8 per cent at $2.17 on a volume of 98,000 shares, less than half its 210,000 average.

Genesis Energy advanced 2 per cent to $3.51 after reporting a 1.6 percent decline in fourth-quarter customer numbers, a 2.7 per cent increase in total generation and a 35 per cent jump in its average wholesale electricity price. Goodson said the numbers were in line with expectations.

Gentrack slumped 13 per cent to $5.16, after downgrading its earnings guidance, blaming delays in customer contracts and potential bad debts in the UK. About 142,000 shares changed hands, more than its 111,000 average.

Goodson said the company had already downgraded its earnings outlook. Today's news showed Gentrack was still dependent on large contracts, despite its efforts to make more software-as-a-service sales.

Oceania Healthcare fell 3.7 per cent to $1.03 on a volume of 1.1 million shares, more than its 682,000 average. The aged-care operator reported a 1.8 percent decline in underlying annual earnings as sector-wide wage hikes and new facilities increased its costs.

Ryman Healthcare rose 0.8 per cent to $13.09. The country's biggest listed retirement village operator held its annual meeting in Orewa today, where shareholders were told the first-quarter trading was satisfactory and that new development will largely fall in the second half of the March financial year.

Spark New Zealand was the most traded stock with a volume of 2.6 million shares, down on its 3.4 million average. It increased by 0.9 per cent to $3.92. Kiwi Property Group rose 0.9 per cent to $1.64 on a volume of 2.1 million shares, more than its 1.5 million average.

Auckland International Airport slipped 0.4 per cent to $9.60 on 1.2 million shares after unveiling plans to spend about $100m on new roads to improve public transport options for travellers and workers.

Of other companies trading on volumes of more than a million shares, SkyCity Entertainment Group rose 1.5 per cent to $3.98, Precinct Properties New Zealand increased 0.9 per cent to $1.785, Infratil fell 0.4 per cent to $4.69, Argosy Property advanced 0.4 per cent to $1.40, and Fletcher Building was unchanged at $4.91.

Heartland Bank's 2024 bonds paying annual interest of 3.55 per cent were the most traded debt security with a volume of 582,000. The notes closed at a yield of 3.02 per cent, up 2 basis points. Heartland Group Holdings' shares fell 0.6 per cent to $1.69.