Market close: NZ shares lag offshore markets

Fisher & Paykel is getting a lift from increasing Covid cases and a problematic flu season in the Northern Hemisphere. Photo / Supplied

The New Zealand sharemarket remains in holiday mode on light trading, but heavyweights Fisher & Paykel Healthcare and Ebos Group continue to provide welcome support.

It was a day of changing fortunes. The S&P/NZX 50 Index had a strong morning, then a late afternoon dip and finally a sharp rise in the last half-hour matching session.

The index closed at 11,646.45, up 20.48 points or 0.18 per cent.

There were 75 gainers and 63 decliners over the whole market on volume of 19.7 million share transactions worth $63.13m.

Matt Goodson, managing director of Salt Funds Management, said last year was all about rising bond yields, which hurt equities. “We think bond yields and inflation have reached their peak, and this year will be all about earnings risks and whether companies can meet market expectations.

“We had an earnings warning from The Warehouse and though they are not necessarily the whole retail sector, it lined up with the all-time low in consumer confidence.

“Over the next two weeks companies will be getting their management accounts for the December quarter and we might see some updates then,” Goodson said.

New Zealand shares lagged offshore markets, with the Australian S&P 200 Index rising 0.66 per cent to 7156.2 points at 6pm NZ time and Wall Street having a surge over the weekend.

Major United States indices snapped a four-week losing streak after the latest employment report showed wage gains cooled in December. Nonfarm payrolls added 223,000 jobs, slightly higher than the expected 200,000, but wages increased 0.3 per cent, below economists’ estimates of 0.4 per cent.

The Dow Jones Industrial Average increased 700.53 points or 2.13 per cent to 33,630.61; the S&P 500 was up 2.28 per cent to 3,895.08; and the Nasdaq Composite added 2.6 per cent to 10,569.29.

At home, Fisher & Paykel Healthcare gained 22c to $23.33, and Ebos Group was up 40c to $45.75.

Fisher & Paykel is getting a lift from increasing Covid cases and a problematic flu season in the Northern Hemisphere, and Ebos is attracting continued buying support after being added to the MSCI Small Cap Index.

Global marketer a2 Milk is also continuing a solid run, increasing 7c to $7.51 as it benefits from the China re-opening.

Contact added 10c to $7.85; Vector collected 6c to $4.23; Skellerup Holdings increased 10c or 1.92 per cent to $5.30; Fletcher Building was up 7c to $4.82; Briscoe Group gained 13c or 2.8 per cent to $4.78; and Accordant Group rose 9c or 5.29 to $1.79.

Other gainers were PGG Wrightson , up 6c to $4.60; NZME increasing 2c or 1.77 per cent to $1.15; Smartpay Holdings adding 3c or 2.8 per cent to $1.10; Savor collecting 2c or 5.26 per cent to 40c; and Chatham Rock Phosphate rising 3.5c or 13.46 per cent to 29.5c.

Arvida gained 2c or 1.77 per cent to $1.15; Scott Technology increased 5c or 2 per cent to $2.55; and Allied Farmers rose 4c or 5.63 per cent to 75c.

Auckland International Airport was down 6c to $8.02, and Ryman Healthcare declined 5c to $5.59.

It was a mixed day for property companies. Vital Healthcare Trust declined 4c or 1.72 per cent to $2.28; Precinct was down 3c or 2.33 per cent to $1.26; and Argosy was up 2c or 1.72 per cent to $1.185.

AFT Pharmaceuticals, unchanged at $3.72, told shareholders in a newsletter that it plans 65 product launches over the next three years.