Market close: NZ market up 1 per cent in strong first day

Fonterra Shareholders’ Fund gained 8c or 2.45 per cent to $3.34. Photo / Michael Craig

The New Zealand sharemarket started the new year with a bang, increasing 1 per cent with blue chip stocks led by Ebos Group grabbing the limelight.

The S&P/NZX 50 Index started rising at noon and closed at 11,587.48, up 114.23 points or 1 per cent. The index eased off in the last half-hour matching session after reaching an intraday high of 11,655.65 points.

There were 82 gainers and 49 decliners over the whole market on healthy holiday volume of 65.39 million share transactions worth $97.34m.

Greg Smith, head of retail with Devon Funds Management, said “it’s a happy start to the year for the market and was in a more positive frame of mind than the United States.”

He said inflation was still the focus for investors. “They will be eyeing every key economic data and the modus operandi by the central banks. The first economic data is the US Federal Reserve minutes being released overnight, and the non-farm payrolls at the end of the week.”

Concern over rising interest rates and inflation stalled the major US indices, with the Dow Jones Industrial down 0.03 per cent to 33,136.37 points; S&P 500 declining 0.4 per cent to 3824.14; and Nasdaq Composite falling 0.76 per cent to 10,386.98.

Like New Zealand, the S&P/ASX 200 Index in Australia had a strong start, gaining 1.52 per cent to 7051.9 points at 6pm NZ time.

Ebos Group, which distributes health and animal care products, reached a new high after rising $1.80 or 4.1 per cent to $45.70.

Smith said “Ebos has been a pandemic success story and has made some sound acquisitions. Ebos proves that if you keep delivering on great expectations, you get rewarded.

“Infratil is another company whose investments are paying off and is delivering on growth prospects.”

Utilities investor Infratil rose 18c or 2.08 per cent to $8.83 after telling the market that its 48 per cent investment in CDC Data Centres has increased in valuation to A$2.97-$3.55 billion (NZ$3.2-$3.55b), from A$2.64-$3.14b.

Based on the CDC valuation, Infratil’s international portfolio annual incentive fee is estimated at $147.9m, an increase of $23.6m since the end of September.

CDC has just opened two of the country’s largest data centres at Hobsonville and Silverdale in Auckland, and has bought more land for further facilities.

Fisher and Paykel Healthcare, like Ebos a pandemic beneficiary, increased 47c or 2.08 per cent to $23.07; Chorus was up 13c to $8.29; ANZ Banking Group gained 61c or 2.43 per cent to $25.76; Westpac added 23c to $25.15; a2 Milk collected 19c or 2.57 per cent to $7.57; and Auckland International Airport rose 18c or 2.3 per cent to $7.99.

Smith said China reopening after “1000 days in the cold” will provide more optimism and benefit China-exposed stocks like a2 Milk and the airport.

In the energy sector, Mercury increased 7c to $5.63. The retirement stocks were launching a rebound. Summerset Group increased 30c or 3.39 per cent to $9.15, and Ryman Healthcare was up 9c to $5.43.

Fonterra Shareholders’ Fund gained 8c or 2.45 per cent to $3.34 on the day the latest global dairy trade auction saw a 2.8 per cent fall in the index, a less than the 3.8 per cent decline on the previous auction.

Sanford was up 10c or 2.44 per cent to $4.20; PGG Wrightson increased 8c or 1.83 per cent to $4.45; Radius Residential Care added 2c or 7.27 per cent to 29.5c; and Task Group gained 1.5c or 4.17 per cent to 37.5c.

AFT Pharmaceuticals gained 7c or 1.92 per cent to $3.72; Sky TV was up 4c or 1.74 per cent to $2.34; SkyCity Entertainment rose 6c or 2.53 per cent to $2.43; Seeka collected 9c or 2.95 per cent to $3.14; MHM Automation added 3c or 3.23 per cent to 96c; and Private Land and Property Fund increased 5c or 3.97 per cent to $1.31.

Mainfreight shed $1.70 or 2.52 per cent to $65.80; Freightways was down 6c to $9.60; Hallenstein Glasson declined 14c or 2.57 per cent to $5.30; and fellow retailer KMD Brands decreased 2c or 1.94 per cent to $1.01.

Winton Land fell 6c or 3.61 per cent to $1.60; TradeWindow was down 5c or 8.47 per cent to 54c; Green Cross Health decreased 3c or 2.16 per cent to $1.36; Eroad shed 2c or 2.13 per cent to 92c; CDL Investments declined 2.5c or 3.31 per cent to 73; and NZ Rural Land Company was down 3c or 2.78 per cent to $1.05.

Ventia Services Group, unchanged at $2.71, has extended its Western Australia Government court security and custodial contract for four years, valued at $229m. Ventia also has a five-year option.