Market close: Renewed hopes of peace in Ukraine provide bright spot for NZX

A man walks with his dog near an apartment building damaged by shelling from fighting on the outskirts of Mariupol, Ukraine. Photo / AP

A further rebound by Fisher and Paykel Healthcare and renewed hopes for Russia-Ukraine peace talks provided a bright day for the New Zealand sharemarket which rose one and a half per cent.

Market leader Fisher and Paykel Healthcare rose $1.03 or 4.33 per cent to $24.83 on trade worth $28.37m, driving the S&P/NZX 50 Index to a close of 12,098.8, up 179.13 points or 1.5 per cent – its biggest one-day rise since March 1.

The NZX was hit by a late trading halt notice from Air New Zealand which is releasing details of its long-awaited billion-dollar capital raise. Investors are expected to be attracted into the capital raise through a heavily discounted share price, as low as 60c a share, some analysts have said. Air New Zealand last traded at $1.375, down 2.5c or 1.79 per cent.

There were 94 gainers and 45 decliners across the whole market on volume of 58.1 million share transactions worth $282.56 million. The trading was dominated by Mercury Energy with 17.88m shares worth $100m, all underwritten, going on the market under the dividend reinvestment plan. Mercury was up 13.5c or 2.31 per cent to $5.97.

The March ANZ Business Outlook survey also provided some hope with business confidence increasing 10 points, and businesses' own activity lifting five points.

Mark Lister, head of private wealth research for Craigs Investment Partners, said while business confidence rebounded from February which was terrible, the level is still looking pretty low with inflation numbers going through the roof.

He said 96 per cent of firms surveyed expected higher costs and 81 per cent expect to increase their prices.

The survey said inflation expectations rose to a new record high of 5.5 per cent.

Lister said the local market had a good day but inflation is still a big concern and it is lagging other markets around the world.

"The United States markets have been quite amazing with a strong rally. The S&P 500 fell 13 per cent at its lowest this year and is now just 2.8 per cent down. We expect the NZX 50 to close the March quarter down around 7.7 per cent – its worst since the same quarter in 2020," Lister said.

On Wall Street, Dow Jones Industrial Average was up 0.97 per cent to 35,294.19; S&P 500 increased 1.23 per cent to 4631.6; and the tech-laded Nasdaq Composite gained 1.84 per cent to 14,619.64.

The markets rose as Russia pulled some troops away from Kyiv, and crude oil fell to US$102.8 a barrel but by 5.45pm NZ time the price was back to US$104.4.

At home, EBOS Group increased 62c to $41; Mainfreight collected $2.40 or 2.94 per cent to $84; Contact Energy gained 13c to $8.08; Fletcher Building was up 11c to $6.31; Skellerup Holdings rose 23c or 4.04 per cent to $5.93; and Vulcan Steel picked up 27c or 2.93 per cent to $9.50.

EROAD continued to make strong ground, rising 40c or 9.93 per cent to $4.43; Infratil was up 22.5c or 2.79 per cent to $8.30; Scales Corporation improved 20c or 4.05 per cent to $5.14; Foley Wines increased 5c or 3.45 per cent to $1.50; and Tourism Holdings gained 9c or 3.15 per cent to $2.95.

Heartland Group Holdings was up 5c or 2.27 per cent to $2.25; Pacific Edge is edging back with a 4c or 4.3 per cent rise to 97c; Comvita was up 13c or 3.88 per cent to $3.48; and MHM Automation gained 3c or 4.55 per cent to 69c.

Sanford increased 15c or 3.24 per cent to $4.78; Sky Network Television was up 8c or 2.89 per cent to $2.85; AFT Pharmaceuticals gained 8c or 2.25 per cent to $3.63; and NZME improved 3c of 1.85 per cent to $1.65.

Property stocks were stronger, with Kiwi Property rising 2.5c or 2.37 per cent to $1.08; Precinct Properties increasing 4c or 2.6 per cent to $1.58; and Property for Industry up 6c or 2.2 per cent to $2.785.

The a2 Milk Company was down 9c to $5.72, with The Goldman Sachs Group reducing its shareholding to 4.73 per cent, from 5.54 per cent.

Harmoney fell 4c or 2.76 per cent to $1.41; Just Life Group decreased 3c or 3.75 per cent to 77c; and South Port New Zealand gave up a recent gain with a 24c or 2.67 per cent fall to $8.76.

Radius Residential Care, up 0.005c to 38.5c, is buying four aged care facilities in Auckland, Hamilton, Palmerston North and Dunedin from its landlord UCG Investments for $46.7m, with funding from the ASB Bank. Radius will then own 12 of the 23 facilities it operates.

Good Spirits Hospitality has delayed the purchase of Nourish Group as it has been unable to advance negotiations with potential equity financiers because of the Covid pandemic. Good Spirits' share price was unchanged at 7.5c.