Fisher & Paykel Healthcare increased its market weighting to nearly 18% as it rose $1.05 or 2.8% to a new high of $38.60.
The New Zealand sharemarket rebounded 1.5% to a 32-month high, led by the increasingly influential Fisher & Paykel Healthcare – with some corporate action in minnow stocks.
After a strong lead from Wall Street, the S&P/NZX 50 Index began climbing late morning and closed at 12,820.28, gaining 187.93 points or 1.49%. The index matched the levels seen in mid-January 2022.
There were 85 gainers and 81 decliners over the whole market with volumes of 32.3 million share transactions worth $126.83 million.
Paul Robertshawe, chief investment officer with Octagon Asset Management, said the local market feels better after two or three days of being under pressure.
“I guess people are taking a more positive outlook once again.
“We are in a period where cyclicals should start outperforming the defensive stocks because of the recent official cash rate cut.”
He said global leads have been volatile lately, with markets falling or rising 1% on every economic data point and the outcome of the United States presidential election.
“There’s no room for error – the markets are highly strung over whether there will be a soft economic landing,” Robertshawe said.
The major US indices pushed higher as the latest inflation data was in line with estimates, increasing the likelihood of an interest rate cut by the Federal Reserve next week.
The August US consumer price index showed annual inflation at 2.5%, down from 2.9% in July and the lowest reading since February 2021.
The technology-driven Nasdaq Composite came alive, increasing 2.1% to 17,395.53 points; S&P 500 was up 1.07% to 5554.13; and Dow Jones Industrial Average gained 0.31% to 40,861.71.
Across the Tasman, the S&P/ASX 200 Index had risen 1.12% to 8077.5 points at 6pm NZ time.
At home, market leader Fisher & Paykel Healthcare has increased its market weighting to nearly 18% as it rose $1.05 or 2.8% to a new high of $38.60. Its market capitalisation is now $22.62 billion, well ahead of next-placed Meridian at $16.13b.
Robertshawe said Fisher & Paykel is unstoppable, helped by Apple’s comment that its new watch can diagnose sleep apnea.
Infratil was up 21c to a new high of $12.40 after backing Contact’s takeover bid for Manawa Energy, in which it has a 51% stake and it will gain $186m from the move.
Contact was up 14c or 1.71% to $8.32 after falling more than 3% the day before. Mercury increased 13.5c or 2.21% to $6.235; Meridian gained 8c to $6.23; and Genesis was up 6c or 2.67% to $2.31.
Westpac Bank increased 81c or 2.36% to $35.11; Ebos Group was 57c to $36.56; Freightways collected 25c or 2.68% to $9.59; Air New Zealand improved 1.5c or 2.83% to 54.5c; Chorus gained 11c to $9.27; and Vulcan Steel rose a further 20c or 2.48% to $8.25.
Scales Corp was up 12c or 3.33% to $3.72; Sky TV gained 9c or 3.44% to $2.71; Santana Minerals rose 16.5c or 7.89% to $2.255; Cooks Coffee increased 4c or 15.38% to 30c; and NZX increased 4c or 3.1% to $1.33.
Metro Performance Glass was down 0.004c or 5.33% to 7.1c after reporting a conditional agreement with a new shareholder, Melbourne-based investment firm Cowes Bay Group, which will become the main lender and refinance previous loan facilities through to the end of October 2027.
Cowes will subscribe to a $10m-$15m capital raising at an expected 3c a share and finish up with a shareholding of no more than 19.9%. Cowes will have a director on the Metro board.
Being AI declined 1.1c or 15.94% to 5.8c after expressing interest in taking a controlling shareholding in communications firm Solution Dynamics, which went into a trading halt. Solution last traded at $1.20.
Solution told the market that the unsolicited, non-binding indicative offer is “insufficiently definite” to call for a response and there can be no certainty that any transaction will eventuate.
Being is planning to raise $5.6m through an unwritten share purchase plan for existing shareholders at 6c a share.
Briscoe Group was down 14c or 2.83% to $4.80 after its cautious half-year report the day before.
T&G Global fell 7c or 4.24% to $1.58; Smartpay declined 4c or 3.77% to $1.02; Comvita was down 4c or 3.36% to $1.15; Vista Group eased 10c or 3.31% to $2.92; and Pacific Edge decreased 0.004c or 3.74% to 10.3c.
Fletcher Building, up 6c or 2.18% to $2.81, confirmed the appointment of Thornton Williams as chief executive of the concrete division after filling the interim role in late March.
Chatham Rock Phosphate, up 1c or 7.69% to 14c, raised $140,555 through a private placement at 10c a share.