Market close: NZ stocks continue strong start to the year

Kiwifruit grower Seeka rose 12c or 3.72 per cent to $3.35. Photo / Stuart Whitaker

The New Zealand sharemarket continued to make some handy gains and once again it was down to the strong rally by Fisher and Paykel Healthcare and Mainfreight.

The S&P/NZX 50 Index recovered from a morning fall – after Wall Street was mixed – and closed at 11,920.41, up 39.4 points or 0.33 per cent. The index reached an intraday low of 11,862.83 and has risen more than 3.5 per cent so far this year.

There were 74 gainers and 58 decliners over the whole market on volume of 26.52 million share transactions worth $114.12 million.

Matt Goodson, managing director of Salt Funds Management, said the market was up for the fifth successive day and a lot of it is driven by Fisher and Paykel Healthcare on modest volumes.

“We’ve seen around the world a return to some growth stocks outperforming and Fisher and Paykel is attracting buying interest each day.”

Fisher and Paykel Healthcare increased 50c or 2.02 per cent to $25.25 on trade worth $11.41m, and has climbed from $21.70 set on December 20. Fisher and Paykel has reclaimed the No 1 spot on market capitalisation with $14.62 billion, ahead of Meridian Energy with $13.48b.

On Wall Street an earnings miss by investment banker Goldman Sachs rattled the markets. The Dow Jones Industrial Average was down 1.14 per cent to 33,910.85 points, and S&P 500 declined 0.2 per cent to 3990.97.

The technology-laden Nasdaq Composite was up 0.14 per cent to 11,095.11 points and has risen 6 per cent this year as investors seek more speculative stocks. The Ark Innovation Exchange Traded Fund, which fell 67 per cent last year, has risen 18.5 per cent this month.

The US earnings season has started positively with some 7 per cent of S&P 500 constituents having reported and 70 per cent beating expectations. But Goldman Sachs shares fell 6 per cent after reporting its biggest earnings miss in a decade.

At home, the latest REINZ housing data showed prices have now fallen 15 per cent from the November 2021 peak and ANZ Research maintains its forecast “for a peak-to-trough decline of 22 per cent.”

Mainfreight rallied $1.65 or 2.36 per cent to $71.65 after reaching $65.80 on January 4.

The country’s largest kiwifruit grower Seeka rose 12c or 3.72 per cent to $3.35; Chorus was up 9c to $8.35; wine exporter Delegat Group increased 20c or 2.03 per cent to $10.05; and Freightways collected 20c or 2.04 per cent to $10.

Recent performer Ebos Group was down 27c to $46.03. Leading banks ANZ declined 47c or 1.73 per cent to $26.75, and Westpac decreased 30c to $25.50.

Ryman Healthcare, up 13c or 2.34 per cent to $5.69, was heavily traded with 3.87 million shares worth $21.8m changing hands. Fellow retirement village operators Summerset Group gained 10c to $9.35, Arvida Group was down 2c to $1.11; and Oceania Healthcare declined 2c or 2.44 per cent to 80c.

In the energy sector, Mercury was up 7c to $5.93; Manawa gained 4c to $5.15; and Contact declined 6c to $7.86.

Restaurant Brands increased 12c or 2.11 per cent to $5.82; Michael Hill International rose 7c or 6.03 per cent to $1.23; Scott Technology added 9c or 3.66 per cent to $2.55; and Air New Zealand was up 1c or 1.92 per cent to 79c.

NZX gained 4c or 3.13 per cent to $1.32; Pacific Edge recovered 2c or 4 per cent to 52c; and Winton Land was up 3c or 1.76 per cent to $1.73.

Other gainers were Colonial Motor Company up 31c or 3.3 per cent to $9.69; New Zealand Oil & Gas increasing 2c or 4.76 per cent to 44; Radius Residential Care adding 2.5c or 8.06 per cent to 33.5c; Task Group collecting 2c or 5.71 per cent to 37c; and Marlin Global fund up 2c or 2.17 per cent to 94c.

Tower decreased 3c or 4.11 per cent to 70c; a2 Milk declined 8c to $7.54; MHM Automation shed 2c or 2.35 per cent to 83c; T&G Global gave up 5c or 2.12 per cent to $2.31; and Eroad fell 5c or 5.1 per cent to 93c, having fallen from $4.94 in 12 months.

Private Land and Property Fund increased 3c or 2.34 per cent to $1.31 after providing a client quarterly update which showed net assets of $125.2m including nine vineyard, hops, dairy and avocado properties.

Booster Innovation Fund, unchanged at $1.42, returned 2.2 per cent in the December quarter and 29.3 per cent a year since it began in August 2021.