Market close: Fletcher Building continues strong run

Fletcher Building rose 14c or 3.33 per cent to $4.35. Photo / File

The New Zealand sharemarket made a healthy gain on the eve of the United States election. But trading volume was down as investors laid off and turned their attention to the winners of the Melbourne Cup and the US election.

The S&P/NZX 50 Index increased 59.47 points or 0.49 per cent to 12,130.31. Trading reached 79 million shares worth $145.58 million and there were 92 gainers and 44 decliners.

The local market followed strong rises on Wall Street overnight, with the Dow Jones Industrial Average climbing more than 400 points. It's been a volatile time for the United States, and other overseas markets, in the build up to the election – and the rising Covid cases.

During October global equities markets fell 5 per cent, while the New Zealand bourse increased 2.9 per cent. "That's a huge outperformance for the month," said Sam Dickie, a Fisher Funds senior portfolio manager.

"The New Zealand market typically is more defensive with the gentailers and other utility stocks and a Covid-19 beneficiary in Fisher and Paykel. And of course we don't have a big problem with coronavirus cases."

The two heavyweights - Fisher and Paykel Healthcare and a2 Milk - had contrasting days but this time they didn't dictate the pace as trade in their shares was below their normal volume. Fisher and Paykel was down 47c to $35.53 on trade worth $21.18m and a2 Milk edged ahead 5c to $14.31 on trade worth $10.6m.

"Under the hood, there were some pretty good movers today," Dickie said. Pushpay Holdings climbed 40c or 4.55 per cent to $9.20; Contact Energy rose 18c or 2.45 per cent to $7.53; Meridian gained 11.5c or 2.14 per cent to $5.495; Spark increased 6c to $4.58.

Apple exporter Scales Corporation was up 14c or 2.86 per cent to $5.04; Ryman Healthcare gained 20c to $14; Trustpower increased 9c to $7.11; and Fletcher Building continued its strong run – just like the Melbourne Cup winner Twilight Payment – racing ahead 14c or 3.33 per cent to $4.35.

Dickie said Fletcher outperformed the market in October, rising 28 per cent – though it has under-performed significantly over the past four years. "Mortgage rates are going down by the day and Fletcher is benefiting from the strong housing, and repairs and maintenance, market."

Recruitment and resourcing company Accordant Group, formerly called Allied Workforce and AWF Madison Group, slumped 15c or 10 per cent to $1.35, while Restaurant Brands declined 18c to $11.81.

Promisia Integrative, which has gone through its fifth transformation after first listing 30 years ago, resumed trading on the NZX and its share price remained unchanged at 0.02c. A total of 42.4m of its shares changed hands in 53 trades, and the price reached 0.03c during the day.

The stock first listed in 1990 as Genestock New Zealand to accelerate the breeding of cashmere and angora goats, then changed its name to Parapine NZ, Counterpoint Equities, Savoy Equities, and finally Promisia Integrative, switching from selling natural remedies to operating in the aged care sector.

Promisia has bought three rest homes in Feilding and Dannevirke from the Brankin Family Trust, and is leasing a fourth in Christchurch. Brankin, which has provided an interest free working capital loan of $1m, has a 51 per cent stake in Promisia.

In the United States – with Democrat Joe Biden leading the opinion polls over incumbent president Donald Trump – the markets were buoyed by the latest statistics which showed an increase in manufacturing activity.

The Dow Jones index rose 423.45 points or 1.16 per cent to 26,925.05, having just got through its worst week since March; the S&P 500 increased 1.23 per cent to 3310.24; and the Nasdaq Composite gained 0.42 per cent to 10,957.61.