Shane Solly, portfolio manager with Harbour Asset Management, said the US markets reacted very warily to the Chinese reopening because it is seen as inflationary. Bond yields increased on the back of this.
“The pace of the reopening is more aggressive than expected and the recovery will herald a burst of activity and consumption. There may be insufficient resources to keep up with the demand,” Solly said.
After three years of closed borders, China made its last major shift from its zero-Covid policy by ending quarantine on arrival, issuing passports and visas, and resuming international flights from January 8.
The US 10 Year Treasury Note yield increased 10 basis points to 3.85 per cent, and the New Zealand 10 Year Government Bond yield gained 15 basis points to 4.52 per cent after falling to 3.96 per cent on December 5.
The NZ dollar weakened to US62.64c against the American greenback, and A92.89c against the Australian after reaching 95.34c on December 16.
Global marketer a2 Milk may just be a China reopening beneficiary, rising 22c or 3.06 per cent to $7.40 and nearing a 14-month high. Synlait was up 4c to $3.54.
The local market’s two biggest stocks Meridian and Fisher and Paykel Healthcare had strong days, rising 19c or 3.74 per cent to $5.27 and 37c to $22.42 respectively.
Other energy stocks Contact was down 6c to $7.82; Vector declined 8c or 1.93 per cent to $4.06; and Manawa decreased 7c to $4.86.
Ebos Group was up 89c or 2.07 per cent to $43.89; Freightways collected 34c or 3.58 per cent to $9.85; AFT Pharmaceuticals increased 9c or 2.53 per cent to $3.65; Foley Wines added 3c or 2.26 per cent to $1.36; and Green Cross Health gained 5c or 3.73 per cent to $1.39.
Vista Group collected 5c or 3.45 per cent to $1.50; Napier Port was up 5c or 1.77 per cent to $2.87; and NZ King Salmon Investments added 1c or 4.76 per cent to 22c.
The retailers perked up following the Christmas and Boxing Day spending. Briscoe Group added 10c or 2.17 per cent to $4.70; Hallenstein Glasson was up 9c to $5.43; Michael Hill gained 2c to $1.16; but the Warehouse Group was down 3c to $2.81.
NZME was up 2c or 1.8 per cent to $1.13; ikeGPS increased 2c or 2.33 per cent to 88c; Radius Residential Care gained 1.5c or 5.88 per cent to 27c; MHM Automation added 2c or 2.22 per cent to 92c; Allied Farmers collected 3c or 4.11 per cent to 76c; Eroad was up 2c or 2.11 per cent to 97c; and Rakon improved 3c or 3 per cent to $1.03.
The property sector was mixed. Stride gained 3c or 2.14 per cent to $1.43; Property for Industry was up 3c to $2.30; Goodman Trust was down 3c to $2.02; and Vital Healthcare Trust declined 8c or 3.43 per cent to $2.25.
Chorus fell 24.5c or 2.9 per cent to $8.195; Port of Tauranga was down 7c to $6.26; and Third Age Health fell 8c or 4.65 per cent to $1.64.
The retirement sector again stumbled. Summerset Group declined 14c to $8.92; Ryman Healthcare was down 9c to $5.43; and Arvida Group decreased 4c or 3.42 per cent to $1.13.
Fast food operator Restaurant Brands decreased 12c or 2 per cent to $5.88, and has fallen from $16 at the end of August last year. It has steadily fallen without any relief since mid-February this year.
Other decliners were Scott Technology down 5c or 1.96 per cent to $2.50; Smartpay Holdings decreasing 2c or 1.89 to $1.04; and Private Land and Property Fund down 3.2c or 2.48 per cent to $1.26.
Booster Innovation Fund, up 1.5c to $1.45, has invested two tranches totalling $193,000 in Auckland University spin-off TamoRx, which develops novel drugs to help fight cancer. Booster now has 30 early-stage companies in its portfolio with a net asset value of $12.7m
