NZ sharemarket looking to end the year up, despite soft retail data

The New Zealand sharemarket is almost certain to finish the year in positive territory after gaining more than half a percent as investors searched out beaten-up stocks.

Friday, December 29th 2023, 10:41AM

by BusinessDesk

The S&P/NZX 50 Index climbed steadily after an early-morning fall and closed at 11,768.68, up 90.25 points or 0.77%.

The top 50 index reached an intraday low of 11,646.18 points and has risen nearly 2.5% for the year, with just a half-day trading session remaining. The S&P/NZX All Index - which comprises of all stocks on the main board - is up 3.4% for the year.

There were 90 gainers and 28 decliners over the whole market and trading was again light with 13.1 million shares worth $44.21m changing hands.

Shane Solly, portfolio manager with Harbour Asset Management, said investment money that had been waiting on the sideline was being put to work at the end of the year.

“We are seeing a broader rally with buying activity in mid-range growth stocks that have been left behind during the year. The late rally reflects a swing in market sentiment – from battling the interest rate rises and pricing in risks to putting capital to work as the rates move down,” Solly said.

The rally continued in the United States with investors looking forward to a series of interest rate cuts next year as inflation heads down to the Federal Reserve target of 2%. It is presently at 3.14%.

The S&P 500 was less than 0.5% off its all-time high after gaining 0.14% to 4781.58 points. The S&P 500 has risen 24% this year, the Dow Jones Industrial Average is up 13% with a new peak of 37,656.52 points, and the technology-heavy Nasdaq Composite has surged 44% to 15,099.18.

On the broader New Zealand market, the top five gainers this year have been 2 Cheap Cars up nearly 178%, Gentrack 164%, Serko 82%, MHM Automation 79% and Winton Land 69%.

The top decliners have been Pacific Edge down nearly 79%, Me Today nearly 78%, Synlait Milk 73.7% and TradeWindow 65.5%.

In the top 50, the leading gainers have been Gentrack, Serko, Turners Automotive 49%, Fonterra Shareholders’ Fund 41% and Sky TV 27.5%.

The leading decliners have been a2 Milk down nearly 38%, The Warehouse 35.6%, KMD Brands 25.4%, SkyCity 19.4% and Ebos Group more than 17%.

In today’s trading

On the main board, Fisher and Paykel Healthcare was up 28c to $23.65; Auckland International Airport gained 20c or 2.33% to $8.79; Mercury Energy added 9.5c to $6.70; Ryman Healthcare collected 9c to $5.84; Port of Tauranga increased 9c to $5.53; and Gentrack was up 17c or 2.64% to $6.62.

Contact Energy gained 8c to $8.02; Chorus was up 7.5c to $7.795; Seeka increased 9c or 3.66% to $2.55; Winton Land added 5c or 1.85% to $2.75; and Mainfreight collected 86c to $69.76.

NZME increased 3c or 3% to $1.03; Sky TV rose 9c or 3.33% to $2.79; Arvida Group improved 5c or 4.85% to $1.08; Restaurant Brands collected 19c or 5.28% to $3.79; and Delegat Group rebounded 20c or 3.23% to $6.40.

Vista Group was up 4c or 2.48% to $1.65; Steel & Tube gained 2c or 1.9% to $1.07; Pacific Edge climbed 1.2c or 12.5% to 10.8c; Accordant Group increased 4c or 4.44% to 94; and Cannasouth was up 0.008c or 6.4% to 13.3c.

In the property sector, Stride gained 4c or 2.84% to $1.45, and Investore was up 2c to $1.19.

The retailers were mixed after payment provider Worldline said Boxing Day spending was down 0.6% to $98.3m. KMD Brands was up 2c or 2.82% to 73c; Briscoe Group added 3c to $4.43; Hallenstein Glasson was down 10c or 1.86% to $5.29; Michael Hill declined 2c or 2% to 98c; and The Warehouse shed 2c to $1.59.

Tags: Market Close