NZ sharemarket rises as US markets near all-time highs - Market close

Shares in Auckland International Airport were up 7c to $8.59. Photo / Alex Burton

It took most of the day but the New Zealand sharemarket finally found its mojo post-Christmas as the Santa rally continued overseas.

The S&P/NZX 50 Index had an early fall but recovered with a late spike in the matching session - the Australian market was powering ahead - and closed at 11,678.43, up 44 points or 0.38 per cent. The NZX index reached an intraday low of 11,593.02.

Trading was light with 15.63 million shares worth $47.85 million changing hands, and there were 76 gainers and 45 decliners on the main board.

Shane Solly, portfolio manager with Harbour Asset Management, said the local market was very quiet and people were scrambling around trying to understand what happened with the Boxing Day sales and how they impacted the retailers.

“The United States markets continue to push towards all-time highs after the latest inflation data was better than expected. The markets are now pricing in a 15 per cent chance of an interest rate cut following the Federal Reserve’s January meeting, and a 95 per cent chance in March.

“The markets have priced in six rate cuts next year and that’s a significant turnaround. It’s wild,” said Solly.

The Federal Reserve’s favoured inflation gauge, the core personal consumption expenditures price index, increased 0.1 per cent in November and 3.2 per cent for the year with economists expecting 3.3 per cent.

The S&P 500 neared its all-time high, of 4796.56 in January last year, after gaining 0.42 per cent to 4774.74 points; the Dow Jones Industrial Average was up 0.43 per cent to a record 37,545.33; and the Nasdaq Composite increased 0.54 per cent to 15,074.57.

The major indices have notched their eighth positive week in a row — a first for the S&P 500 since 2017 and for the Dow dating back to 2019.

Across the Tasman, the S&P/ASX 200 Index was up 0.87 per cent to 7567.2 points at 6pm NZ time.

At home, Auckland International Airport was up 7c to $8.59; Port of Tauranga gained 11c or 2.06 per cent to $5.44; Freightways collected 19c or 2.3 per cent to $8.44; Skellerup increased 9c or 1.8 per cent to $5.09; a2 Milk improved 5c to $4.65; and Fonterra Shareholders’ Fund rose 16c or 4.79 per cent to $3.50.

In the energy sector, Mercury climbed 13.5c or 2.09 per cent to $6.605; Meridian was up 7c to $5.55; Manawa increased 8c or 1.9 per cent to $4.29; and Contact was down 7c to $7.94.

The retirement village sector, benefiting from an improving housing market, was stronger. Ryman Healthcare added 9c to $5.73; Summerset Group was up 15c to $10.30; and Oceania Healthcare gained 2c or 2.78 per cent to 74c.

In the property sector, Goodman Trust increased 4.5c or 2.08 per cent to $2.21, and Investore was up 3c or 2.63 per cent to $1.17.

Retailer Michael Hill rose 6c or 6.38 per cent to $1, while Hallenstein Glasson was down 8c to $5.39.

Cannasouth shares fell 3.85 per cent to 12.5c after it announced two of its directors had resigned. Independent director Hilary Webber and executive Greg Misson will step down from the company as January 1 and January 5, 2024 respectively, although Misson will continue in his executive management role until March 31.

Other gainers were AFT Pharmaceuticals up 9c or 2.69 per cent to $3.44; Comvita adding 7c or 3.14 per cent to $2.30; Vulcan Steel rising 34c or 4.24 per cent to $8.36; Ventia Services collecting 6c or 1.86 per cent to $3.28; and Winton Land up 5c or 1.89 per cent to $2.70.

NZX was up 2c or 1.87 per cent to $1.09; Solution Dynamics rose 5c or 3.57 per cent to $1.45; Restaurant Brands climbed 10c or 2.86 per cent to $3.60; Foley Wines collected 3c or 2.65 per cent to $1.16; Pacific Edge gained 0.004c or 4.35 per cent to 9.6c; and Radius Residential Care was up 0.008c or 6.2 per cent to 13.7c.

Gentrack was unchanged at $6.45. Australian investment firm Regal Funds Management told the market it bought 4.25 million Gentrack shares for A$25.41m ($27.41m) at an average of A$5.98 (a share, taking its holding to 5.48 per cent.

Amsterdam-based Swann Hill BV offloaded its 9.66 per cent stake or 9.53 million Gentrack shares for $66.153m before Christmas.

Among the decliners, Smartpay was down 5c or 3.23 per cent to $1.50; Steel & Tube decreased 3c or 2.78 per cent to $1.05; Move Logistics shed 2c or 3.64 per cent to 53c; Burger Fuel fell 2c or 7.14 per cent to 26c; and 2 Cheap Cars was down 2c or 2.3 per cent to 85c.