The markets were spooked by lower-than-expected loan activity in China and the re-emergence of banking concerns in the United States. The banks are facing making a higher contribution to the deposit insurance pool.
Solly said investors here have reset their expectations leading into the reporting season.
“We do see the rate of earnings decline slowing, as has been the case in Australia and the United States. The company reporting there was not as bad as expected.”
He said investors were presently under-exposed in shares and they were looking at companies that could sustain or grow their earnings through a slowing economy.
“Our market is benefitting because people can put their money to work in defensive stocks.”
Manawa Energy is the first company to report on Tuesday, followed by Argosy Property, Serko (Wednesday), Goodman Property Trust (Thursday), Investore and Ryman Healthcare (Friday).
The market was driven up by Fisher and Paykel Healthcare gaining 52c or 1.97 per cent to $26.87; Mainfreight collecting 40c to $70; Fletcher Building increasing 10c or 2.14 per cent to $4.78; a2 Milk rebounding 16c or 2.84 per cent to $5.79; and Infratil adding 13.5c to $9.495.
Meridian Energy, up 3c to $5.50, reported that national hydro storage increased from 119 per cent to 121 per cent of historical average in the month to May 8, and retail sales volumes were 2.7 per cent lower in April compared with the same month last year.
Warehouse Group was up 5c or 2.91 per cent to $1.77 after telling the market that trading improved in the third quarter despite a challenging consumer environment. Group sales increased 3.8 per cent to $801.3m for the 13 weeks ending April compared with the same period last year.
The Warehouse sales were up 10.5 per cent to $444.1m, Warehouse Stationery sales down 2.5 per cent to $65.7m, Noel Leeming down 3.4 per cent to $247.8m, and Torpedo7 down 3 per cent to $35.4m. Group year-to-date sales were $2.6b, up 4.5 per cent.
Other retailers Michael Hill declined 2c or 1.89 per cent to $1.04; Briscoe Group down 10c or 2.22 per cent to $4.40; and Hallenstein Glasson decreased 9c to $6.40.
Online travel provider Serko increased 10c or 4.55 per cent to $2.30 after reporting that its United States partner CWT has made an expanded arrangement with Booking.com. Both businesses will add content and servicing to Serko’s technology platform.
Spark, up 1c to $5.22, has an agreement with the Crown for a direct allocation of C-band mobile spectrum which will be used in the roll-out of 5G services, including 27 sites in 25 regional towns.
In return, Spark will invest an additional $24m over the next two years to support the expansion of mobile coverage into rural New Zealand and address blackspots on state highways.
Other gainers were Air New Zealand increasing 2c or 2.63 per cent to 78c; Move Logistics rising 4c or 4.65 per cent to 89c; Tower up 2c or 3.45 per cent to 59c; Allied Farms improving 3c or 4.35 per cent to 72c; and Steel & Tube adding 2c or 1.94 per cent to $1.05.
Mercury Energy was down 15c or 2.29 per cent to $6.40; Ebos Group declined 30c to $44.10; Chorus gave up 10c to $8.50; Heartland Group shed 5c or 3.21 per cent to $1.51; Sky TV decreased 5c or 1.89 per cent to $2.60; and Napier Port, now a volatile stock, was down 8c or 3.14 per cent to $2.47.
NZME shed 2c or 1.92 per cent to $1.02; Foley Wines declined 4c or 3.01 per cent to $1.29; Accordant Group was down 3c or 1.9 per cent to $1.55; ikeGPS decreased 3c or 3.75 per cent to 77c; and Cannasouth gave up1c or 3.45 per cent to 28c.
Millennium & Copthorne Hotels NZ, up 4c or 1.9 per cent to $2.15, expressed disappointment at the Supreme Court ruling that backed the Accommodation Provider Targeted Rate (bed tax) imposed by Auckland Council, maintaining the rate is unfair and inequitable.
“We consider the Supreme Court missed a unique opportunity to provide guidance to local government across New Zealand and should have clarified the position on how targeted rates should work,” said Millennium.
