Market close: NZ shares surge as global deals cheer investors

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High-flying Meridian Energy became the largest local cap stock and 10 others hit new highs as the New Zealand sharemarket continued to surge post-Christmas.

The S&P/NZX 50 Index climbed its own new heights to 13,246.77, up 208.83 points or 1.6 per cent. There were 107 gainers and just 35 decliners over the whole market on volume of 46 million share transactions worth $89.1m.

Greg Smith, head of research with Fat Prophets, said the period between Christmas and New Year usually sees Santa coming a little bit late. The volumes are low in this period, but the volume that's there was positive.

"The Brexit deal and President Trump signing off the coronavirus stimulus package has added broader market optimism and removes some uncertainty for 2021," Smith said.

Meridian rose 63c or 8.75 per cent to a new high of $7.83, jumping ahead of Fisher and Paykel Healthcare on market capitalisation - $20.06 billion to $19.30b. Fisher and Paykel was down 50c to $33.50.

It was another big day for the energy stocks, with Contact increasing 26c or 2.96 per cent to a new high of $9.04; Mercury rising 30.5c or 4.74 per cent to $6.745; Genesis gaining 6c to $3.63; Trustpower climbing 19c or 2.43 to $8; and Vector up 10c or 2.39 per cent to $4.28.

Smith said the aluminium price has been increasing (it traded at $US2030 per tonne during the day) and there was renewed hope that the Tiwai Point smelter would remain open.

"The reason Rio Tinto gave for pulling the plug was that the smelter was not profitable. There is now more of a chance of becoming a profitable enterprise and they may re-look at their decision," he said.

Other stocks to scale new heights were: Mainfreight, up $1.07c to $67; Ebos Group, climbing 72c or 2.55 per cent to $28.92; Summerset Group Holdings, increasing 56c or 4.63 per cent to $12.66; fellow retirement village operator Oceania Healthcare, gaining 6c or 4.35 per cent to $1.44; Skellerup Holdings, up 13c or 3.72 per cent to $3.62; Tilt Renewables, moving 33c or 5.32 per cent to $6.53; Serko, gaining 3c to $5.95; and PGG Wrightson, increasing 5c to $3.34.

The a2 Milk Company recovered a further 16c to $12.22, while associated company Synlait Milk was up 16c or 3.19 per cent to $5.17.

Online marketing firm Plexure Group had a revival, rising 8c or 7.21 per cent to $1.19; telecommunications network operator Chorus increasing 18c or 2.29 per cent to $8.05; seafood company Sanford climbing 15c or 3.03 per cent to $5.10; robotics innovator Scott Technology up 7c or 3.10 per cent to $2.33; and Air New Zealand gaining 5c or 2.8 per cent to $1.835.

Allied Farmers, which backed the new listing NZ Rural Land Company, was down 4c or 6.15 per cent to 61c.

New Zealand Oil and Gas slumped 22c or 29.73 per cent to 52c after discovering the Ironbark-1 gas well off the Western Australian coast was dry. "Bugger … a very disappointing result for us all," was NZOG chief executive Andrew Jefferies' succinct response.

The consortium, with NZOG having 15 per cent, drilled to the target depth of 5275m, intersected the remaining sands and found no significant hydrocarbon shows. Smith said he was once told: "The best well is the one that is never drilled. It's disappointing – the oil price is heading back to $US50 per barrel."