Market close: Happier New Year as shares head higher

Air New Zealand gained 2c or 2.68 per cent to 76.5c. Photo / Supplied

The New Zealand sharemarket is shaping a welcome New Year rally — something that was missing pre-Christmas — as battered stocks attract fresh buying support.

Following the 1 per cent rise the day before, the S&P/NZX 50 Index gained a further 63.81 points or 0.55 per cent to close at 11,651.29, after hitting an intraday high of 11,699.98.

There were 85 gainers and 42 decliners on the main board, with 22.35 million shares worth $90.54m changing hands.

Shane Solly, portfolio manager with Harbour Asset Management, said “we are seeing the market grinding higher with some fresh cash coming in. The little bit of buying is enough to lift the market.”

He said investors are picking some stocks that have been knocked around, but they are still conservative about where they go. With such low trading volumes, it doesn’t take much to move prices.

“We will get a better idea next week when the wider market participants return, but the first two trading days of the year have been positive,” Solly said.

Crude oil fell 5 per cent to US$73.80 a barrel — its steepest percentage loss in the first two trading days of any year for more than three decades — with investors worrying about fuel demand as the global economy slows and Covid-19 cases grow in China.

Wall Street also had a positive day. The Dow Jones Industrial Average was up 0.4 per cent to 33,269.77 points, the S&P 500 increased 0.75 per cent to 3852.97 and the Nasdaq Composite rose 0.69 per cent to 10,458.76.

Across the Tasman, the S&P/ASX 200 Index was ahead 0.12 per cent at 7067.4 points at 6pm NZ time.

Solly said there were signs that inflation was slowing, though the minutes indicated the US Federal Reserve will not be cutting interest rates any time soon.

The central bank warned that it will take substantially more evidence of progress to be confident that inflation was on a sustained downward path.

Solly said the latest French consumer price data was lower than expected, and the ISM manufacturing index showed a contraction after 30 months of expansion.

At home, the renewed buying saw online travel provider Serko rise 9c or 4 per cent to $2.34; Ryman Healthcare increase 7c to $5.50; Oceania Healthcare edge up 1c to 79c; and Air New Zealand gain 2c or 2.68 per cent to 76.5c.

Vista Group recovered 6c or 4 per cent to $1.56; Pacific Edge was up 2.5c or 5.05 per cent to 52c; and hospitality group Savor increased 3c or 8.7 per cent to 37.5c.

Fisher & Paykel Healthcare is also benefiting from the new buying, rising 43c or 1.86 per cent to $23.50; Mainfreight rebounded $1.20 or 1.82 per cent to $67; Auckland International Airport was up 7c to $8.06; and Goodman Property Trust increased 3c to $2.05.

Meridian Energy gained 5c to $5.30 but Mercury was down 4.5c to $5.585.

Most retailers had a strong day, with The Warehouse Group adding 7c or 2.64 per cent to $2.72; Hallenstein Glasson gaining 6c to $5.36; and KMD Brands increasing 2c or 1.98 per cent to $1.03; and But Michael Hill was down 2c or 1.71 per cent to $1.15.

Summerset Group increased 15c to $9.30; Vulcan Steel collected 8c to $8.78; Third Age Health Services gained 4c or 2.48 per cent to $1.65; and ikeGPS added 3c or 3.41 per cent to 91c.

Other gainers were New Zealand Oil & Gas collecting 1c or 2.41 per cent to 42.5c; and Marlin Global fund up 3c or 3.42 per cent to 91c.

Utilities investor Infratil gave up the gain from the day before, declining 12c to $8.71; Restaurant Brands slipped a further 8c to $5.60; Delegat Group shed 21c or 2.06 per cent to $9.99; and Scales Corp decreased 7c to $4.01.

Eroad, which reached $4.94 a year ago, was down 2c or 2.17 per cent to 90c; Millennium & Copthorne Hotels NZ decreased 5c or 2.7 per cent to $1.80; and transport and logistic software firm TradeWindow declined 2c or 3.7 per cent to 52c.