Market close: NZ sharemarket rallies on massive trading day

Auckland International Airport, up 2c to $7.92, was the second-heaviest traded stock with $95.1 million. Photo / Michael Craig

The New Zealand sharemarket staged a broad-based rally, gaining nearly 1 per cent, following the Reserve Bank’s surprise forecast of an increased official cash rate the day before.

The S&P/NZX 50 Index traded strongly in the afternoon in an extended session for the quarterly rebalancing of the MSCI global indices. The index closed at 11,330.2, up 94.26 points or 0.84 per cent, after reaching an intraday low of 11,192.86 points.

A massive 127.24 million shares worth $670.66 million changed hands, with a2 Milk and Summerset Group dropping out of the MSCI Small Cap Index and Arvida Group out of the Micro Cap Index. There were 81 gainers and 56 decliners on the main board.

Summerset was down 26c or 2.72 per cent to $9.31 on trade worth $91.49m; a2 Milk declined 11c or 2.58 per cent to $4.15 on trade of $103.86m; and Arvida decreased 2c or 1.98 per cent to 99c.

Auckland International Airport, up 2c to $7.92, was the second-heaviest traded stock with $95.1m.

Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said the local market had “a bit of a relief rally after the change in the Reserve Bank forecast. It’s still an interest rate story.”

The bank’s cash rate forecast peak is now 5.69 per cent, up from the present 5.5 per cent. United States markets are pricing in a Federal Reserve rate cut in May next year.

Sullivan said wholesale interest rates did fall slightly and this helped the (dividend-paying) energy and property stocks.

ANZ Research said business confidence lifted another eight points to plus 31 in November, and expected own activity increased three 3 points to plus 26.

Mercury Energy rose 15c or 2.47 per cent to $6.23; Meridian gained 8.5c to $5.215; and Contact was up 13c or 1.71 per cent to $7.74. Precinct Properties gained 1.7c to $1.14, and Property for Industry was up 2.5c to $2.20.

Among other leading stocks, Fletcher Building gained 16c or 3.58 per cent to $4.63; Chorus added 13.5c or 1.79 per cent to $7.665; Mainfreight collected 78c to $67.50; and The Warehouse improved 12c or 7.06 per cent to $1.82.

In the retirement sector, Oceania Healthcare rose 4c or 5.71 per cent to 74c, and Ryman Healthcare was up 18c or 3.45 per cent to $5.40.

SkyCity, up 5c or 2.78 per cent to $1.85, told the market the High Court has backed Sky’s interpretation of the Auckland carpark concession agreement with MPF Parking NZ. The payment to MPF will be calculated on the SkyCity valuer’s methodology.

Other gainers were Restaurant Brands up 15c or 4.01 per cent to $3.89; PGG Wrightson increasing 11c or 3.26 per cent to $3.48; T&G Global adding 4c or 2.16 per cent to $1.89; and Vulcan Steel collected 17c or 2.18 per cent to $7.97.

Fisher & Paykel Healthcare was down 24c to $23.56 following its bounce the day before after reporting a solid half-year result. Sullivan said the stock is very volatile and may be affected by the fluctuating cross-rate between the NZ and American dollars.

The Colonial Motor Co declined 40c or 4.19 per cent to $9.14; Eroad was down 4c or 4.19 per cent to $9.14; and Accordant Group continued to fall, down 7c or 7.22 per cent to 90c after the starting the week at $1.09.

Genesis Energy, unchanged at $2.37, told the market it will use profits from the Kupe gas field to support a $1.1 billion programme to build new renewable generation and grid scale battery storage, for some 8300GWh, between now and 2030. Genesis’ present renewable generation is 3200GWh.

Radius Residential Care, down 0.003c or 2.14 per cent to 13.7c, confirmed it has sold the Arran Court care home in Henderson for $19m net proceeds, which will be used to repay existing debt.

Green Cross Health declined 5c or 4.35 per cent to $1.10. The Life Pharmacy operator reported steady half-year revenue of $250m, and a 21 per cent fall in net profit to $5.6m. It is paying an interim dividend of 2.5c a share on December 20.