NZ shares rise as tourism stocks recover

New Zealand’s benchmark equity index gained a few points as Stride Property climbed and tourism stocks recovered on a partial reopening of the trans-Tasman bubble.

Tuesday, June 29th 2021, 11:47PM

by BusinessDesk

The S&P/NZX 50 Index rose 36.07 points, or 0.3%, to 12,639.82. Turnover was $194.2 million.

Most offshore equity markets were flat or weaker overnight and commodity currencies underperformed as a risk-off mood pervaded financial markets.

The local market, which has been underperforming – down 5.4% this year – made marginal gains with mixed news from listed stocks.

Stride Property gained 2% at $2.39 after Forsyth Barr analysts reiterated their positive view of the stock while outlining how a potential spin-off of its office portfolio may work.

The property investment firm has grown its office portfolio to a size that it could list separately on the NZX. This would give Stride more room on the balance sheet to make other investments.

This hypothetical 'Office Co' would likely join the NZX 50 immediately and bump Sky TV off the index, the analysts said.

The pay-TV operator climbed 0.6% to 17.1 cents bringing its market capitalisation to just under $298.7 million.

Chief executive Sophie Moloney today told investors she had retained investment bank Jarden to assess to review potential deals, but was focused on a three-year strategy.

Skellerup Holdings led the market higher – up 2.9% to $4.95 – followed by Contact Energy which rose 2.8% to $8.34.

Tourism stocks fell hard yesterday but recovered today as the government announced it would reopen the travel bubble with four Australian states this weekend.

Air New Zealand rose 1.6% to $1.56, SkyCity Entertainment climbed 1.5% to $3.43, Auckland Airport and Tourism Holdings bounced 0.4% each to $7.29 and $2.53, respectively.

Kathmandu said additional covid-19 restrictions in Australia during the critical winter season will mean annual sales will drop below its prediction of $930 million. Its shares fell 2.5% to $1.56.

The retailer said 40 stores in New South Wales are currently closed for two weeks and 26 stores in Western Australia have closed for at least four days from today.

Vital Healthcare Property Trust units rose 0.3% to $3.05. Its manager said the trust will buy a Melbourne private hospital and two development properties in Queensland for a total of A$103.5 million and a development site in Grafton, Auckland for $7.25m.

The kiwi dollar was trading at 70.43 US cents at 3pm in Wellington, down from 70.68 cents yesterday as commodity currencies declined.

The trade-weighted index was at 74.12 at 3pm, from 74.32 yesterday. The kiwi traded at 93.17 Australian cents from 93.22 cents, 77.83 yen from 78.24 yen, 59.11 euro cents from 59.27 cents, 50.79 British pence from 50.92 pence, and 4.5515 Chinese yuan from 4.5664 yuan.

Tags: Market Close