New Zealand shares gained as the US earnings season helped lift sentiment toward equities. Growth-linked companies including Synlait Milk, A2 Milk, Comvita led gains in the local market.
The S&P/NZX 50 Index rose 3.54 points, or 0.04 per cent, to 8,373.03. Within the index, 26 stocks fell, 13 rose and11 were unchanged. Turnover was $111 million.
Across the Asia Pacific region today, equity markets were generally stronger. Japan's Topix was up 0.2 per cent and Australia's S&P/ASX 200 Index was up 0.4 per cent in afternoon trading. Overnight, better earnings from US companies including Morgan Stanley lifted Wall Street.
"The US earnings season has got off to a good start," said Greg Smith, head of research at Fat Prophets. "The focus is going to turn away from geopolitical concerns back to the earnings season, which highlights the underlying strength in the US economy."
Synlait climbed 3 per cent to $9.88 and is up 38 per cent for the year while A2 advanced 2.8 per cent to $12.70, bringing its year-to-date gain to 58 per cent. Comvita, another beneficiary of Chinese demand for New Zealand products, rose 2.3 per cent to $6.75.
Scales Corp, the apple grower and exporter, rose 2.3 per cent to $4.50. The company told BusinessDesk today that it is eyeing potential agribusiness acquisitions that would fit well with its export apple business.
"We think New Zealand agribusinesses are in a good space, they make good products, and sell them to Asia," chief executive Andy Borland told BusinessDesk.
"We have over the years developed our skills around exporting and dealing with Asia, particularly China, and we are looking at businesses within New Zealand that would work with those sort of dynamics and be complementary to our apple business. We are really looking for those sort of New Zealand opportunities."
On the Unlisted platform today, monopoly kiwifruit exporter Zespri traded at a record $8.35, becoming Unlisted's first $1 billion company.
Heartland Bank rose 1.1 per cent to $1.78 and Trade Me Group climbed 1.1 per cent to $4.44. Chorus rose 0.9 per cent to $4.
Defensive stocks were among the biggest decliners. Metlifecare fell 2.2 per cent to $5.70 and Mercury NZ fell 1.7 per cent to $3.15. Traders have speculated that Mercury could drop out of a benchmark MSCI index when weightings are reviewed. Fletcher Building, another contender, is halted for its capital raising.
Arvida Group dropped 1.7 per cent to $1.18 and Ryman Healthcare fell 1.4 per cent to $10.63.
