Market close: Travel and leisure stocks rally on border news

Tourism Holdings CEO Grant Webster. THL gained 5c or 1.82 per cent to $2.79. Photo / Brett Phibbs

The reopening of the border for vaccinated tourists from mid-April, first for Australians, provided a big boost for some travel and leisure stocks as the New Zealand sharemarket gained more than half a per cent.

The S&P/NZX 50 traded steadily in positive territory, and closed at 11,874.11, up 72.37 points or 0.61 per cent.

There were 101 gainers and 38 decliners over the whole market with 43.8 million shares worth $182.72 million changing hands.

Greg Smith, head of retail with Devon Funds Management, said the border reopening is a major step forward – the biggest in two years – and eases the pressure on the tourism sector.

"The managed isolation and quarantine has gone – this didn't appeal to travellers – and it puts New Zealand on the path with other countries competing for the tourism dollar," Smith said.

Australians, including permanent residents, will be able to come to New Zealand without isolating from April 13. Travellers from 60 visa-waiver countries and territories can enter the country from May 2.

"We also have the overnight announcement of the United States Federal Reserve which is expected to raise interest rates by 25 basis points. The Fed will be conscious of inflation and the wider risks associated with the situation in Ukraine," said Smith.

"There is some speculation of a ceasefire in Ukraine and US President Joe Biden is due to visit next week, but the situation is constantly evolving."

Air New Zealand increased 3c or 2.17 per cent to $1.41; SkyCity Entertainment rose 9c or 3.19 per cent to $2.91; Tourism Holdings gained 5c or 1.82 per cent to $2.79; Vista Group picked up 2c to $1.71; but Auckland International Airport was down 8c to $7.20, and Serko declined 12c or 2.58 per cent to $4.54.

In its latest operating report, Auckland International Airport said total passenger volumes declined 1.2 per cent in January compared with the previous corresponding month, and were down 19.9 per cent in February.

Retailer Briscoe Group rose 19c or 3.28 per cent to $5.99 after reporting record net profit of $87.9m, up 20.1 per cent, on revenue of $744.45m, up 6.1 per cent, for the 12 months ending January 30.

Online sales increased 21 per cent and are now 21.47 per cent of total group sales, and Briscoe is paying a final dividend of 15.5c a share on March 31.

Fellow retailer Hallenstein Glasson benefited from Briscoe's strong result, rising 23c or 3.95 per cent to $6.05.

Kathmandu Holdings has changed its name to KMD Brands to complete a refreshed corporate plan and its share price gained 3c or 2.36 per cent to $1.30.

Market leader Fisher and Paykel Healthcare was up 20c to $27.20; Contact Energy rose 18c or 2.31 per cent to $7.97; Mercury gained 25c or 4.55 per cent to $5.75; Freightways increased 26c or 2.3 per cent to $11.56; and a2 Milk collected 4c to $5.52.

Retirement village operators Summerset Group Holdings rose 24c or 2.12 per cent to $11.54, and Ryman Healthcare was up 18c or 1.9 per cent to $9.63.

Chorus was up 7c to $7.38; Fonterra Shareholders' Fund rose 10c or 2.97 per cent to $3.47; Heartland Group Holdings increased 5c or 2.38 per cent to $2.15; Move Logistics collected 6c or 5.45 per cent to $1.16; and the Carbon Fund gained 6c or 2.79 per cent to $2.21.

Delegat Group collected 24c or 1.81 per cent to $13.49; Accordant Group increased 4c or 2.15 per cent to $1.90; Livestock Improvement Corporation was up 5c or 3.45 per cent to $1.50; and Pacific Edge gained 2c or 2.27 per cent to 90c.

Among the decliners, Mainfreight was down 60c to $76.40; Pushpay Holdings lost 3c or 2.73 per cent to $1.07; DGL Group decreased 6c or 1.94 per cent to $3.03; Precinct Properties shed 4c or 2.61 per cent to $1.495; and Allied Farmers fell 4c or 4.71 per cent to 81c.

Green Cross Health increased 3c or 2.33 per cent to $1.32 after upgrading its forecast by having a 16 per cent increase in revenue for the 11 months ending February 28. Net profit for the year ending March is now estimated at $9m-$10.5m, up from the previous guidance of $4.5m-$6.5m.

Plexure Group was up 1c to 32.5c after it told the market that Task and its own software management platform will be used in all the Tank stores in New Zealand. The platform will update Tank's online ordering and enhance its loyalty programme.

NZX told the market it has completed its retail shortfall bookbuild and has raised a total of $44m. The money will be used to fund its investment in Global Dairy Trade and other growth opportunities. NZX's share price was unchanged at $1.38.