Mercury CEO Fraser Whineray. Photo / File
New Zealand shares rose as investors count down for China and the US to cut a trade deal before tariffs take effect in 10 days.
The S&P/NZX 50 Index increased 18.41 points, or 0.2 per cent, to 11,276.20. Within the index, 21 stocks rose, 18 fell and 11 were unchanged. Turnover was $126.1 million.
US tariffs are set to kick in from December 15, and investors have been reacting to headlines on the minutiae of what would be the first phase of a wider trade deal to end a protracted dispute between the world's two biggest economies.
Stock markets were moderately stronger across Asia, with Australia's S&P/ASX 200 Index up 0.3 per cent in afternoon trading, while Hong Kong's Hang Seng increased 0.7 per cent and Singapore's Straits Times Index was up 0.1 per cent.
"The US dollar continued its recent slide, and gold rose, suggesting not all investors are convinced that a trade deal will arrive before the 15 December deadline for increased US tariffs on Chinese goods," Michael McCarthy, chief market strategist at CMC Markets, said in a note.
Fruit exporter Scales Corp rose 1.4 per cent to $4.97, recovering from yesterday's decline when it projected flat 2020 earnings. Global logistics group Mainfreight was up 0.5 per cent at $41.10 and milk marketing firm A2 Milk rose 0.5 per cent to $15.17.
Fonterra Shareholders' Fund units were among the day's stronger performers, up 2.5 per cent at $4.10. Fonterra yesterday raised its forecast payout to farmers due to strong global demand, and the company said first-quarter earnings improved on increased revenue and higher margins. The units were down 0.5 per cent yesterday.
Peter McIntyre, an investment adviser at Craigs Investment Partners, said the update was a more conservative approach from Fonterra.
Mercury NZ led the market higher, up 2.8 per cent at $4.92 on a volume of 1.6 million shares, in line with its 90-day average of 1.9 million.
Other yield plays were also stronger, with Goodman Property Trust up 1.4 per cent at $2.19, Stride Property rising 0.9 per cent to $2.26 and Meridian Energy advancing 0.8 per cent to $5 on a volume of 1.7 million shares.
Gentrack Group fell 2.2 per cent, or 8 cents, to $3.62 after shedding rights to a 3-cent dividend. That was the days' biggest fall. Fisher & Paykel Healthcare fell 1.7 per cent, or 36 cents, to $21.22 after shedding rights to a 12-cent dividend.
Genesis Energy declined 1.9 per cent to $3.03.
Z Energy fell 1.6 per cent to $4.84. The Commerce Commission yesterday recommended government regulate wholesale fuel markets to lower pump prices.
Spark New Zealand was the most traded stock on a volume of 6.3 million shares, more than twice its 3 million average. It fell 0.7 per cent to $4.43.
Of other stocks trading on volumes of more than a million shares, Kiwi Property Group fell 0.3 per cent to $1.545, Investore Property was up 0.6 per cent at $1.845, and Contact Energy increased 0.6 per cent to $7.23.
Outside the benchmark index, Rakon fell 5.3 per cent to 27 cents. The company said underlying earnings before interest, tax, depreciation and amortisation was expected to be $9m to $11m in the year ending March 31, down from earnings of $13.3m.
Millennium & Copthorne Hotels New Zealand rose 0.4 per cent to $2.50 on an unusually large volume of 2.7 million shares. It typically trades on a volume of 16,000 shares. Refinitiv data showed a single trade of 2.66 million shares at $2.35 a share, which McIntyre said was a late order.