"Most investors are still a bit cautious. A number of bargain hunters came out to buy," following the rally on Wall Street, said Grant Williamson, a director at Hamilton Hindin Greene.
New Zealand's market entered bear market territory earlier this month as it slumped sharply from its peak in late February. Refinitiv data puts the market's historic price to earnings ratio at 17.05 times, still one of the highest among major Asian indices.
Companies that have been the most beaten up were among today's strongest performers.
Sky Network Television, which has been trading near all-time lows, jumped 34.2 per cent to 25.5 cents. The pay-TV operator today said it's been deemed an essential service through the lockdown period.
Tourism Holdings, which suspended dividend payments and ditched earnings guidance due to the virus, climbed 20.6 per cent to 88 cents.
Retirement village operators have also been sold off as investors question whether the covid-19 outbreak will hit their residents more harshly than the wider population.
Metlifecare, which is under a takeover offer, rose 16.4 per cent to $4.83, Summerset Group climbed 15.7 per cent to $4.522, Arvida Group was up 13 per cent at $1.13, and Ryman Healthcare advanced 11.9 per cent to $9.20. Oceania Healthcare gained 10.6 per cent at 52 cents.
Air New Zealand was the most traded stock on a volume of 10.2 million shares, compared to its 90-day average of 1.6 million. The stock rose 3 per cent to 87 cents. The national carrier was given a $900m lifeline by the government last week in the form of loans that may convert to equity.
Williamson said it was vital for New Zealand to keep its airline, and that the question for investors was how much they would get diluted when the government converted its debt to equity.
Auckland International Airport jumped 10.3 per cent to $5.45.
Among other NZX50 firms that outed themselves as essential services, Contact Energy rose 3.5 per cent to $5.26, Scales climbed 11.3 per cent to $4.03, and Sanford was up 6.7 per cent to $6.05.
Mercury NZ was up 2.4 per cent at $4.20 after saying it had suspended non-essential work, including the construction of its Turitea wind farm in Manawatu.
Fletcher Building fell 0.9 per cent to $3.37 after it withdrew its earnings guidance, cancelled its dividend and suspended its share buyback programme.
Fisher & Paykel Healthcare posted the day's biggest decline, down 6.2 per cent at $28.15. The breathing respirator maker has been buoyed by a weak currency and increased demand for its products spurred on by the pandemic.
Restaurant Brands New Zealand increased 2.5 per cent to $7.30. It said it will close its New Zealand stores during the four-week lockdown that starts tonight.
Outside the benchmark index, Moa Group rose 14 per cent to 15.5 cents after saying its brewing services will remain open, although its bars and restaurants will close.
Warehouse Group remained in a trading halt at $2.02. The retailer jumped the gun yesterday when it announced it was deemed an essential service, only to have officials and the prime minister publicly shoot down that claim later in the day.
