Powercos rally to push market higher

Genesis shares were up 1.1 per cent yesterday to $1.90. Photo / Dean Purcell

With Meridian instalment cash banked and weaker kiwi, investors also look to shares with Aussie exposure.

New Zealand shares rose yesterday, paced by Genesis Energy, Contact Energy and Mighty River Power in a relief rally as Meridian Energy's instalment came due.

The NZX 50 Index rose 12.334 points, or 0.2 per cent, to 5772.71. Within the index, 21 stocks rose, 20 fell and nine were unchanged. Turnover was $98.7 million.

Genesis rose 1.1 per cent to $1.90. Contact advanced 1.1 per cent to $5.70. Mighty River Power gained 1.4 per cent to $2.88. The energy companies had been sold off as investors looked to raise cash ahead of Meridian Energy's instalment receipt coming due this month.

"The selling pressure that had come from people selling to take up Meridian might be off now," said James Smalley, a director at Hamilton Hindin Green. "It's a release of some selling pressure there."

Meridian Energy fell 1.3 per cent to $2.35. The state-controlled energy generator and retailer received 98 per cent in instalment receipts with the first round of share transfers due this Thursday. The 2 per cent which was not paid was now being sold into the market and to institutional investors, Smalley said.

Companies with transtasman exposure climbed on the back of weakness in the Kiwi dollar against its Australian counterpart, Smalley said.

Fletcher Building rose 1.3 per cent to $8.71. SkyCity Entertainment Group advanced 0.7 per cent to $4.26. A2 Milk Co, which earns most of its income in Australia marketing its milk, was the best performer on the benchmark index, climbing 2 per cent to 51c.

Kiwi Property Group last traded at $1.285 before being being put in a trading halt as it looks to raise $151.9 million in a share offer to help fund the expansion of its Sylvia Park shopping mall.

Fellow property investors fell, in part as the market looked to raise cash for the capital raise, Smalley said. Property For Industry was the worst performer on the benchmark index, down 1.9 per cent to $1.54. DNZ Property Fund declined 1.5 per cent to $2. Argosy Property fell 1.4 per cent to $1.10. Precinct Properties New Zealand slipped 1.8 per cent to $1.105. Goodman Property Trust fell 0.9 per cent to $1.15.

NZX rose 0.9 per cent to $1.14. The stock market operator has tapped Aaron Jenkins to head its expanded funds management business, with Mark Peterson to fill his vacated role as head of markets.

Spark New Zealand was unchanged at $2.89.

Outside the benchmark index, Wynyard Group advanced 5.8 per cent to $1.84 after the security software firm said it saw annual revenue growing as much as 73 per cent this year as it presses ahead with a number of contracts and gets closer to finalising a major distribution agreement in law enforcement markets. The company expects revenue of between $40 million and $45 million in calendar 2015, up from $26 million last year.

On the New Zealand Alternative Index, Cooks Global Foods dropped 7.1 per cent to 13c. The coffee chain said it expected to open 150 Esquire Coffee stores in China in the next five years, after entering a joint venture with Chinese retail and property investor BuBuGao (Better Life) Group.