Genesis hits record as NZ shares shrug off Wall St weakness

Genesis rose as high as $3.08 and ended the day at $3.07, up 2.3 per cent. Photo / File

New Zealand shares shrugged off the weak leads from Wall Street overnight as the defensive qualities of companies offering stable dividends found favour with investors. Genesis Energy was among those beneficiaries, hitting a record today.

The S&P/NZX 50 Index rose 55.51 points, or 0.6 per cent, to a record 9,574.82. Within the index, 33 stocks gained, 11 fell, and six were unchanged. Turnover was $232 million, of which $88.1m was in Trade Me Group.

Investors on Wall Street were spooked by the technical signal of a potential recession as the yield on longer-term bonds fell below shorter-dated debt. The world's low interest rate environment has been a boon for a number of New Zealand's listed utilities, which typically deliver stable dividends.

Electricity retailer-generators are among those that have been trading at all-time highs, with Genesis the latest to hit a record. It rose as high as $3.08 and ended the day at $3.07, up 2.3 per cent. About 416,000 shares changed hands, compared to its 381,000 90-day average.

Lines company Vector rose 1.7 per cent to $3.59, while real estate investor Argosy Property was up 1.6 per cent at $1.26.

Grant Williamson, a director at Hamilton Hindin Greene, said defensive stocks remain in vogue in the low interest rate environment.

"The market very much likes defensive companies," he said.

Vista Group International led the market higher, up 4.3 per cent at $4.90. Fletcher Building gained 3.2 per cent to $4.80 and Ryman Healthcare was up 2.4 per cent at $11.74.

Trade Me was the most traded stock, unchanged at $6.40 on a volume of 13.8 million shares. Shareholders will vote next week on whether to accept a $6.45 a share takeover bid.

Spark New Zealand rose 0.8 per cent to $3.70 on a volume of 10.7 million, almost twice its 5.7 million average.

NZX rose 1 per cent to $1 on a volume of 3.7 million shares, well north of its three-monthly average 152,000. The stock market operator got caveated support from the NZ Shareholders' Association. The retail investor lobby says the stock market operator is moving in the right direction and that it will give it another year to measure the changes that have been made.

Of other companies trading on volumes of more than a million shares, Contact Energy increased 0.2 per cent to $6.57, Meridian Energy decreased 1.1 per cent to $3.995, and Auckland International Airport edged up 0.1 per cent to $8.

Restaurant Brands New Zealand reported the biggest decline on the day, down 4.3 per cent to $8.90 on a volume of 724,000. Finaccess Capital's already successful $9.45 a share partial takeover offer closes today.

Kathmandu Holdings declined 2.9 per cent to $2.35 after reporting a 14 per cent gain in first-half profit as improved margins, the Oboz acquisition, and a tax refund offset flat sales in New Zealand and Australia.

Outside the benchmark index, Abano Healthcare sank 14 per cent to $4.94, the first time below $5 since September 2012. The healthcare investor issued a profit warning over trading conditions in Australia and said it has stopped buying new dental practices there.

QEX Logistics climbed 6.7 per cent to $1.12 after signing new distribution deals with Open Country Dairy and Swisse Wellness.

Veritas Investments dropped 14 per cent to 12 cents. Yesterday, it announced the $1.5m acquisition an Auckland suburban bar.

Moa Group rose 5.3 per cent to 40 cents after saying it generated positive earnings over the summer quarter and is on track to near break-even profitability for the six months ending March 31.