The leading United States indices rebounded strongly, with Dow Jones Industrial Average up 1.45 per cent to 34,911.2 points; S&P 500 increasing 1.61 per cent to 4462.21; and Nasdaq Composite rising 2.15 per cent to 13,619.66 – with better-than-expected earnings results coming through, apart from Netflix.
In after-hours trading Netflix fell 25.73 per cent to US$258.90 ($382.67) after reporting a loss of 200,000 subscribers during the last quarter – its first decline in paid users for more than a decade. Netflix is forecasting a global subscriber loss of two million for the second quarter.
At home, Ryman Healthcare fell under the $9 mark after declining 8c to $8.94 on trade worth $17.88m - a new two-year low after reaching $8.99 on February 24. Ryman hit a high of $15.80 on September 6 and began the year at $12.40.
Goodson said Ryman is in the pricing period of the MSCI World Large Cap Index and it looks like it will fall out. Some of the trading may be directed at that.
The index's half-year rebalancing will be known on May 13. Goodson said Ebos Group (up 2c to $41.67) might join the index but it appears there is not quite enough liquidity this time around.
New Zealand will likely be represented by five stocks in the index – Fisher and Paykel Healthcare, Meridian (up 5c to $4.90), Auckland International Airport, Spark and Mercury Energy (up 6c to $5.96).
Auckland International Airport increased 20c or 2.6 per cent to $7.89. Last week the airport reported that total passenger volumes decreased 19.9 per cent in February compared with the same month last year, but international passengers increased 56.4 per cent. March volumes declined 14.8 per cent but international surged 330 per cent even before the border was opened to Australian visitors.
Spark was up 11c or 2.27 per cent to $4.96. Goodson said Spark was outperforming other dividend yield stocks and there is optimism about the price it will get for selling its cell towers.
Freightways was up 25c or 2.07 per cent to $12.30; a2 Milk recovered 14c or 2.79 per cent to $5.15; Fletcher Building gained 9c to $6.32; Mainfreight increased $2.14 or 2.68 per cent to $82.04; and Delegat Group rose 40c or 3.13 per cent to $13.20.
Ventia Services Group continued its climb, rising 8c or 2.59 per cent to $3.17; Vulcan Steel was up 19c or 1.97 per cent to $9.83; Steel and Tube gained 4c or 2.82 per cent to $1.46; and NZ King Salmon Investments rebounded 3.5c or 7.61per cent to 49.5c.
DGL Group is also powering ahead, rising 29c or 6.94 per cent to a new high of $4.47. My Food Bag picked up 4c or 4.4 per cent to 94c; Green Cross Health increased 5c or 3.65 per to $1.42; CDL Investments was up 2.5c or 2.27 per cent to $1.125; and Millennium & Copthorne Hotels New Zealand gained 6c or 2.43 per cent to $2.53.
Genesis Energy, up 5c to $2.85, said in its third quarter performance report that brand satisfaction is at a record high and customer churn is down below 13 per cent. Carbon emissions had reduced 63 per cent on last year, driven by increased hydro inflows, higher gas production and a full quarter's production of Waipipi wind generation.
Among the decliners, NZME was down 5c or 3.07 per cent to $1.58; Stride Property decreased 5c or 2.56 per cent to $1.90; Argosy Property fell 4.5c or 3.26 per cent to $1.335; and Gentrack shed 4c or 2.11 per cent to $1.86.
Foley Wines told the market that its latest harvest (9185 tonnes) is 65 per cent bigger than last year's, and it has received Overseas Investment Office approval to buy the 55ha Zebra Bendigo Flat Vineyard in Central Otago.
Foley has also received its resource consent to redevelop the Mt Difficulty Cellar Door and Restaurant in Bannockburn. Foley's share price was unchanged at $1.52 after rising 8.57 per cent the day before.
