Market close: Energy stocks power NZ shares to gain, dollar nears 12-month high against Aussie

The NZ dollar neared a 12-month high against the Australian at A94.6c. Photo / 123RF

The New Zealand sharemarket followed Wall Street with a strong rebound led by energy stocks. But there is still a nervous wait for the latest inflation moves in the United States over the next two days.

The S&P/NZX 50 Index had a late flourish in the last half-hour matching session, rising 94.96 points or 0.83 per cent – its third-highest close in two months.

There were 73 gainers and 47 decliners over the whole market on volume of 29.17 million shares worth $147.1 million. The day was dominated by heavy trading in Fisher & Paykel Healthcare, up 2c to $22.50, with 1.79 million shares worth $36.08m changing hands.

Shane Solly, portfolio manager with Harbour Asset Management, said the markets were focused on the US November consumer price index and then the Federal Reserve’s monetary policy announcement and whether the pace of interest rate hikes will slow.

“It’s a nervous wait but once we are over this, investors will start looking at corporate earnings risks and which companies will keep growing,” Solly said.

The major US indices had nice rebounds. The Dow Jones Industrial Average was up 1.58 per cent to 34,005.04 points; S&P 500 increased 1.43 per cent to 3,990.56; and Nasdaq Composite gained 1.26 per cent to 11,143.74.

The NZ dollar neared a 12-month high against the Australian at A94.6c and was steady against the American greenback at US63.76c.

The housing market continues to weaken, with prices now 14 per cent below the peak in November last year, and ANZ Research maintains its peak-to-trough fall of 22 per cent.

Contact Energy increased 11c to $7.77 after being included in the prestigious Dow Jones Sustainability Asia Pacific Index and has the second highest ranking of any New Zealand company in terms of environmental, social and governance initiatives. Other local stocks on the index include Meridian and Auckland International Airport.

Fellow energy stocks Meridian was up 17c or 3.48 per cent to $5.05; Mercury increased 15c or 2.76 per cent to $5.58; Vector gained 12c or 2.94 per cent to $4.20; and Manawa added 7c to $5.09.

Telecommunications provider Chorus increased 15c or 1.84 per cent to $8.30 as it looks ahead to employing skilled staff. Chief executive JB Rousselot welcomed the government’s latest immigration changes, saying they will help fill 350 vacant roles for skilled technicians working on its fibre and copper networks.

Auckland International Airport gained 14.5c or 1.81 per cent to $8.15; a2 Milk increased 14c or 1.99 per cent to $7.16; Ebos Group added 54c to $42.30; and Skellerup Holdings was up 6c to $5.30.

Serko increased 6c or 2.42 per cent to $2.54; AFT Pharmaceuticals gained 5c to $3.60; Goodman Property Trust was up 3c to $2.05; and TradeWindow rose 3c or 5.45 per cent to 58c. New listing Blackpearl Group had a pick-me-up, gaining 2c or 5.56 per cent to 38c.

Tourism Holdings rose 13c or 3.75 per cent to $3.60 following its merger with Australian Apollo Tourism & Leisure and a broker upgrade. Solly said it is now a bigger entity and is getting more support.

In the retail sector, The Warehouse Group gained 4c to $2.94; KMD Brands was up 2c or 1.9 per cent to $1.07; Hallenstein Glasson climbed 11c or 2.1 per cent to $5.36; and Briscoe Group was up 9c or 1.86 per cent to $4.76.

Fonterra Shareholders’ Fund was up 1c to $3.25 after the dairy cooperative’s latest divestment – offloading the Brazilian joint venture with Nestle in Dairy Partners Americas (DPA) to French dairy company Lactalis for $210m after being for sale for two years. Fonterra holds 51 per cent in DPA and Nestle 49 per cent.

Pacific Edge increased 3.5c or 7.61 per cent to 49.5c after telling the market that positive results from enhanced Cxbladder tests will be published in the American Journal of Urology. The study involving 804 patients in Singapore and United States showed improved diagnostic performance using DNA biomarkers.

Pacific Edge is now focussing on further clinical evidence for its enhanced Cxbladder Detect test. Solly said this is the next iteration of the Cxbladder tests and gives Pacific Edge a longer-term growth path. “The company is getting on with building its research base.”

The Australian Competition and Consumer Commission has begun public consultation of ANZ’s offer to buy Suncorp Bank. ANZ’s share price was up 36c to $25.36.

Advanced manufacturing company Rakon hit a 14-month low after falling 4c or 3.88 per cent to 99c.

Mainfreight declined 55c to $68; Seeka was down 8c or 2.58 per cent to $3.02; Gentrack decreased 4c to $2.44; Property for Industry gave up 4c to $2.34; Vulcan Steel shed 12c to $8.80; and Channel Infrastructure was down 3c or 2.04 per cent to $1.44.

In the retirement village sector slowed by the downturn in the housing market, Ryman Healthcare declined 13c or 2.09 per cent to $6.10; Arvida Group decreased 3c or 2.5 per cent to $1.17; Summerset Group gained 4c to $9.23; and Oceania Healthcare was up 2c or 2.53 per cent to 81c.