Market close: NZX bounces back with late push

Gordon MacLeod, Ryman chief executive. Photo / File

The New Zealand sharemarket left it late but in the finish it bounced back strongly as some of the medium-sized cap stocks took centre stage.

The S&P/NZX 50 Index gained 109.81 points or 0.93 per cent to 11,902.98, after falling 2.5 per cent over the previous two days. The index reached an intraday low of 11,974.59 but a surge in trading in the final hour saw a total of 71.31 million shares worth $218.79 million change hands. There were 83 gainers and 52 decliners over the whole market.

The market was comforted by the latest announcement from the New Zealand Reserve Bank governor Adrian Orr that the bank was committed to supporting the economic recovery "with extra monetary tools".

Shane Solly, portfolio manager with Harbour Asset Management, said the central bank was well regarded as being at the forefront of using new policy tools.

He said the market was choppy and "we saw companies that were left behind having a rally. The reporting season has been better than expected and we are seeing investors revisit the market and companies where earnings and their balance sheets are positive."

Latest statistics showed there was increased residential activity, and Fletcher Building was up 13c or 3.78 per cent to $3.57. Ryman Healthcare rose 34c or 2.52 per cent to $13.84, and Vista Group – which supplies cinema software - gained 7c or 3.93 per cent to $1.85 as movie theatres re-opened around the world.

Medical products company Ebos Group had another strong day after providing a solid financial result and dividend, rising 63c or 2.70 per cent to $24 – the first time it has reached that mark since April. Fisher and Paykel Healthcare recovered lost ground, increasing 64c to $36.15.

Restaurant Brands climbed 41c or 3.41 per cent to $12.44 after announcing it had completed the purchase of 69 KFC and Taco Bell stores in Southern California for US$80.7m ($118.98m). The American business has maintained a 12 month turnover of US$95m and store ebitda of more than $12m.

AMP, established in 1849 and listed in 1998, was the day's biggest mover, rising 13c or 7.88 per cent to $1.78, after announcing it was reviewing its group assets and businesses. AMP, which operates on both sides of the Tasman and recently sold AMP Life, said it has had an increase in enquiries about its operations and "the board has therefore decided to assess all opportunities in a considered and holistic manner."

Fishing company Sanford's share price held up well, staying steady at $5.70 after admitting it was having a tough time with Covid-19. Sanford said sales revenue was down 15 per cent for the third quarter of the 2020 financial year compared with the same period last year, and the decrease is expected to be repeated in the fourth quarter.

Pushpay Holdings fell 34c or 3.95 per cent to $8.26. Former director Justine Smyth, who resigned in July, sold $0.5m worth of Pushpay shares and reduced her holding by 70 per cent. This followed the move by chief executive Bruce Gordon to sell $12.4m worth of Pushpay shares.

Carpet maker Cavalier is strengthening its balance sheet with a net $24m sale of its Auckland manufacturing plant to Kinleith Land & Infrastructure and its share price increased 2c or 6.15 per cent to 34.5c.