by BusinessDesk
The S&P/NZX 50 Index rose 108.45 points, or 0.9%, to 12,702.97. Turnover was light with $107 million traded.
Shares in global logistics firm Mainfreight led the market higher, as it rallied another 3.5% to $84.88. On Friday, Jarden analysts added $10 to their target price which now sits at $85.
The upgrade followed better-than-expected earnings in the first 17 weeks of its financial year and reflected its “strong balance sheet and attractive long-term growth opportunities in large addressable markets”.
Fisher & Paykel Healthcare climbed 2.7% to $32.40, while A2 Milk rose 2.7% to $6.39. Both are large growth stocks, benefitting from positive market sentiment.
Investment advisor at Hamilton Hindin Greene, Grant Davies said there had been little news to drive the market higher, but investors seemed to be positive about the growth outlook.
“There are just as many stocks going down as up today, but those going up are the big caps,” he said.
It wasn’t all good news, with Genesis Energy falling 1.6% to $3.375 after it told the market to brace for a $53 million one-off hit to operating earnings.
The cost is due to a surprise loss in a dispute over liability for carbon emissions produced by natural gas bought from one of its suppliers.
It will mean Genesis’s emissions obligations will increase forcing it to use more emissions trading scheme units, which it says will come from its existing stockpile.
The electricity generator also announced a conditional 20-year electricity offtake agreement with Tilt Renewables which will allow for a wind farm to be built near Dargaville in Northland.
The Kaiwaikawe windfarm will reduce carbon emissions from Genesis’ thermal generation by an estimated 180,000 tonnes per annum.
Stock market operator NZX had the day’s worst performance, falling 3.1% to $1.86. Davies said recent metrics had shown signs that the pandemic trading boom was slowing.
The kiwi dollar was trading at 69.63 US cents by 3pm in Wellington, down from 70.01 cents on Friday.
The trade-weighted index was at 73.90 at 3pm, from 74.13 on Friday. The kiwi traded at 94.91 Australian cents from 94.74 cents, 76.39 yen from 76.64 yen, 58.70 euro cents from 58.92 cents, 50.12 British pence from 50.18 pence, and 4.5012 Chinese yuan from 4.5218 yuan.
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