Market close: NZ shares open week with strong gain

Sharp rises by F&P Healthcare and a2 Milk dragged the index into positive territory. Photo / NZME

Sharp rises by Fisher and Paykel Healthcare and a2 Milk and another new listing brightened the New Zealand sharemarket as it opened the week with a solid gain.

The S&P/NZX 50 Index was up 56.31 points or 0.44 per cent to 12,964.46 after reaching an intraday low of 12,906.27. The index had a strong rise in the last half hour of the matching session

There were 54 gainers and 89 decliners across the whole market on light volume of 30.65 million share transactions worth $125.4 million.

Fisher and Paykel Healthcare and a2 Milk dragged the index into positive territory after suffering heavy losses on Friday. Fisher and Paykel made up its lost ground and more, rising $1.47 or 4.81 per cent to $32. On Friday the global medical devices supplier fell $1.40 or 4.38 per cent.

Dairy nutrition company a2 Milk was up 28c or 4.5 per cent to $6.50 following word on Friday that it will be removed from the MSCI World Index later this month.

Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said a2 Milk was cheered by news that Chinese retail sales in October grew 4.9 per cent, well ahead of market forecasts of 3.5 per cent.

"Also, there are signs that the logistics pressures are easing. The (price) index for shipping containers has fallen 11 per cent from its highs at the start of October, and container backlogs are now being cleared," he said.

Talking of transport and logistics, software company Trade Window will be listing on the NZX next Monday at a reference price of 92c.

Established in 2018, Trade Window provides a digital platform and solutions for exporters, importers, freight forwarders and customs brokers to increase connectivity and visibility.

Two of Trade Window's major shareholders are ASB and Quayside Holdings, which owns 54 per cent of Port of Tauranga. Trade Window is chaired by Napier Port chairman Alasdair MacLeod.

Move Logistics is establishing a coastal shipping service and its share price gained 7c or 4.02 per cent to $1.81. Port of Tauranga continues to be knocked around, falling 13c or 1.86 per cent to $6.87, and Napier Port was up 4c to $2.98.

Ryman Healthcare is also being buffeted, falling 50c or 3.47 per cent to $13.90, and fellow retirement village operator Summerset Group Holdings was down 18c to $3.70.

Restaurants Brands was down 30c or 1.96 per cent to $15; Mainfreight lost 37c to $90.28; Skellerup Holdings shed 9c to $6.38; EROAD declined 11c or 2.14 per cent to $5.04; and Vista Group decreased 6c or 2.28 to $2.57.

SkyCity Entertainment declined 3c to $3.15. It told the market its Hamilton casino will reopen on Wednesday following the move by Government to drop Waikato to alert level 2. Prime Minister Jacinda Ardern said the country will be moving sooner to the new Covid traffic light system, providing greater certainty for business.

Contact, up 14c to $8.08, has proposed a new, co-operative industry organisation to help create a 100 per cent renewable electricity market in New Zealand. The organisation would own, operate and retire all of the country's major thermal generation assets as new renewable generation is built, reducing carbon emissions by 1.2 million tonnes a year by 2030.

New Zealand currently relies on thermal electricity generation from gas, coal and diesel during periods of peak demand or when there is insufficient water, wind and sun to meet demand from renewable sources.

Vector is making a six-year, fixed rate bond offer of up to $300m including over-subscriptions, and its share price gained 2c to $3.94. Mercury Energy was up 4c to $6.09; Genesis increased 4c to $3.16; Trustpower gained 5c to $7.45; and Meridian was down 6c to $4.80.

Pushpay Holdings recovered 5c or 3.4 per cent to $1.52; new listing Vulcan Steel was up 8c to $8.10; Tourism Holdings gained 5c to $2.90; Plexure Group rose 6.5c or 14.29 per cent to 52c; Accordant Group rose 4c or 2.11 per cent to $1.94; and software firm Geo increased 0.009c or 5.52 per cent to 17.2c.

Good Spirits Hospitality is buying The Nourish Group with its 10 bars and restaurants in Auckland, Wellington and Queenstown, for $21.3m plus an additional payment of up to $5.9m based on venue performance within 12 to 24 months of settlement. Good Spirits' share price rose 1.1c or 15.94 per cent to 8c.

Green Cross Health, working with Pacific Equity Partners, has withdrawn from the process to buy Tamaki Health, New Zealand's largest independent primary healthcare group with more than 40 practices. Green Cross' share price was down 6c to or 4.92 per cent to $1.16.