New Zealand shares joined a global rally as investors grow increasingly optimistic about the recovery from the Covid-19 outbreak.
The S&P/NZX 50 Index rose 84.10 points, or 0.8 per cent, to 11,118.27. Within the index, 34 stocks rose, 15 fell, and one was unchanged. Turnover was $202.7 million.
Stock markets worldwide were stronger today as lockdowns were lifted and ongoing stimulus bolstered investor confidence, extending the rapid recovery from the crash in March. The NZX50 is now down a mere 3.2 per cent this year.
Mark Lister, head of private wealth research at Craigs Investment Partners, said concerns were being overshadowed by the feeling that the world was returning to normal, while at the same time near-zero interest rates stoke demand for equities.
"You don't have to look very far to find some people who are pretty cynical about the strength of the rebound," he said. "But the bulls seem to be in full control at the moment."
Asian markets followed Wall Street higher, with most benchmark indices climbing at least half a per cent. Australia's S&P/ASX 200 Index was up 1.6 per cent in late trading.
Vista Group International led the NZX50 higher, jumping 21.4 per cent to $1.99 as investors see the opportunity for further gains. Vista has climbed 75 per cent from its all-time low but is still down more than 40 per cent this year.
Lister said the hardest-hit stocks were "en vogue" given they may recover further.
"People are essentially bargain hunting for the ones that are exhibiting some value and are set to benefit from the economy reopening," he said.
For example, Accident Compensation Corp emerged as a substantial investor in Sky Network Television today, building up a 9.4 per cent stake at an average price of 12.3 cents per share. Sky rose 1.3 per cent to 15.4 cents today, having completed the institutional component of its $157m capital raising at 12 cents a share. New Zealand Rugby didn't participate in the offer.
rose 10.2 per cent to $2.17, its second day of double-digit gains. The stock has doubled since March but is still down more than 40 per cent year to date.
SkyCity Entertainment Group rose 8.8 per cent to $2.85 after it said trading was profitable due to recovering revenues and tight cost control.
Refining NZ increased 9.6 per cent to 80 cents. Lister said the "rising tide lifts all boats" and upbeat investors were happy to take on risk. The stock was further supported by oil markets stabilising after a "horrendous" month in March.
Z Energy gained 2.7 per cent at $3.
Gentrack rose 8.1 per cent to $1.73. Lister said the utility software company had "dragged itself off the floor" but was still a long way from last year's $6 price.
The year's biggest gainers were the day's biggest decliners as investors looked for rebound opportunities elsewhere.
Pushpay Holdings posted the biggest decline, dropping 4.3 per cent to $7.50. It's still up 87 per cent this year.
Fisher & Paykel Healthcare fell 3 per cent to $29.35. Today the kiwi dollar climbed above 64 US cents, which had taken the wind out of the exporter's sails, Lister said.
Investore Property fell 0.6 per cent to $1.70. It expects to maintain dividend payments after dodging the pandemic fallout, with more than three-quarters of its portfolio occupied by 'essential' services. Net profit however dropped $10m to $28.6m, due largely to a smaller gain in the value of its portfolio than a year earlier.