Arvida Group led the New Zealand share market higher as investors were cheered by positive earnings reports and - like much of Asia - shrugged off news Moody's Investors Service cut its sovereign credit rating on China.
The S&P/NZX 50 Index rose 37 points, or 0.5 per cent, to 7,421.78. Within the index, 26 stocks rose, six were unchanged and 18 fell. Turnover was $135 million. Elsewhere in Asia, Japan's Topix was up 0.5 per cent while across the Tasman the S&P/ASX 200 was up 0.1 per cent despite the news from Moody's. In China, however, the CSI 300 was down 0.5 per cent.
Bryon Burke, head of equities at Craigs Investment Partners, said the New Zealand market was in positive territory and was largely "order flow driven", in that investors were interested in specific stocks in the wake of the results. Trading was fairly tepid as investors "are waiting for the next move" from offshore for direction, Burke said, noting that volumes remain below average.
Arvida Group, the retirement village company that listed in 2014, added 3.8 per cent to $1.36 after it posted a net profit of $53.7m in the 12 months ended March 31, up from $24m a year earlier. The positive sentiment helped bolster other retirement village operators with Ryman Healthcare adding 1.3 per cent to $8.56 and Metlifecare adding 0.2 per cent to $5.59. Summerset Group bucked the trend, shedding 0.4 per cent to $4.91.
Restaurant Brands New Zealand added 1.8 per cent to $5.72. Unite Union said today it was making headway in its talks with the fast food operator. Last month Unite members took industrial action after talks broke down with Restaurant Brands, picketing KFC stores in Auckland, Rotorua, Palmerston North, Wellington, Christchurch and Dunedin during a Saturday lunch time. The parties are at odds over pay and conditions and Unite national secretary Gerard Hehir says they've made some progress after meeting several times over the last couple of weeks.
