by BusinessDesk
The S&P/NZX 50 Index advanced 76.35 points, or 0.6 percent, to 12,356.89. Within the index, 37 stocks rose, 12 fell and one was unchanged. Turnover was $155.2 million.
Global share markets rallied strongly last week, rebounding from a weak September as US lawmakers appeared to be making progress on a trillion-dollar fiscal support package.
This combined with some positive local news gave the NZX 50 its strongest weekly gain since April, pushing it to a record high up almost 7 percent year-to-date.
Contact Energy led the market higher again, rising 3.2 percent to $8.10 on the likelihood it will be added to the MSCI NZ index, with its peer Meridian Energy gaining 2.8 percent at $5.55.
“The impact of low interest rates is still shining through, and the talk around Tiwai, although lacking detail, is enough to give the market enough confidence to be buying again,” said Grant Davies, an investment adviser at Hamilton Hindin Greene.
Contact has gained about 20 percent across the past nine trading days, up from $6.66 at the start of October.
Pharmaceutical distributor Ebos Group rose 2.5 percent to $25.39 ahead of its annual general meeting tomorrow. The stock is trading at its highest level since November 2019.
Heartland Group Holdings rose 2.2 percent to $1.40 after grabbing some headlines with the lowest fixed term home loan rates in the market, starting at 1.99 percent fixed for one year.
Davies said it was unlikely to move the dial on earnings in the short term, but the stock already had good momentum after reporting full year profit was up 7.2 percent last month.
The other banks also made gains. Australia & New Zealand Banking Group rose 1.2 percent to $20.37 and Westpac Banking Corp climbed half a percent to $19.94.
Z Energy released monthly fuel data showing volume down 7.6 percent from the previous period due to ongoing low demand for jet fuel. The fuel retailer’s share price fell 0.4 percent to $2.74. Air New Zealand declined 0.7 percent to $1.525.
Outside the top 50 index, dental group Abano Healthcare jumped 13.2 percent, or 50 cents, to $4.30 after its scheme of arrangement takeover price was increased 50 cents to $4.75. The improved offer comes after Abano’s independent valuer upped its valuation following four months of strong trading.
The New Zealand dollar made strong gains during the overnight session on Friday, rising from 66 US cents to 66.73 cents heading into the weekend.
This morning, the currency resumed trading weaker at 66.41 cents but climbed back towards its peak as the risk-on mood remained.
The kiwi dollar was trading 66.63 US cents at 5pm in Wellington, up from 66.07 cents on Friday.
The trade-weighted index was at 71.34 at 5pm, from 70.88 on Friday. The kiwi traded at 92.18 Australian cents from 91.99 cents, 70.27 yen from 69.92 yen, 56.38 euro cents from 56.10 cents, 51.12 British pence from 50.99 pence, and 4.4770 Chinese yuan from 4.4344 yuan.
« Hot property market drives shares higher | NZ shares rise for tenth session » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved