Fletcher Building was one of the market gainers. Photo / Michael Craig
Fletcher Building was one of the market gainers. Photo / Michael Craig
Passive investment funds actively refreshed their portfolios and bought blue chip stocks, boosting the New Zealand sharemarket, which gained half a per cent.
The S&P/NZX 50 Index had a strong rise in the afternoon and closed at 12,121.39, up 68.2 points or 0.57 per cent after reaching an intraday lowof 12,046.
There were 85 gainers and 56 decliners over the whole market on light volume of 41.96 million share transactions worth $124.65m.
Shane Solly, portfolio manager with Harbour Asset Management, said several big stocks had solid days as the investments funds made their allocations for the second quarter.
Mercury Energy was up 10c to $6.09; Meridian also rose 10c or 1.96 per cent to $5.20; Fletcher Building increased 9c to $6.30; Spark collected 10c or 2.15 per cent to $4.75; Chorus improved 10.5c to $7.30; Auckland International Airport gained 12.5c to $7.79; and Ryman Healthcare was up 15c to $9.20.
Market leader Fisher and Paykel Healthcare was down 17c to $24.53; and a2 Milk declined 13c or 2.3 per cent $5.52 as one Australia broker changed its rating from buy to sell.
Air New Zealand's capital raise is still captivating the market. Photo / Brett Phibbs
Air New Zealand, raising $1.2 billion from investors, continued to hold the market's attention. The airline's share price for the ordinary shares increased 4.5c or 4.97 per cent to 95c, and the rights raced to 75c, up 26c or 53.06 per cent and well ahead of the reference price of 49c.
Solly said there has been some unusual pricing. "Maybe there is an opportunity for some people to trade the stock and take advantage of the differential price. Tomorrow is an important day when we will get real trading going on in the rights."
The Air New Zealand share register for the two-for-one renounceable rights offer has now closed and shareholders will know exactly how many rights they can trade.
The NZX pointed out that each Air New Zealand right represents an entitlement to subscribe for two new ordinary shares (at 53c a share) in the airline. A total of 1.122 billion rights have been issued and when exercised will result in the issue of 2.246b new shares.
Solly said shareholders have to remember they are paying and having to fund 53c times two ($1.06) for the new shares in Air New Zealand.
Meanwhile, Stride Property's subsidiary Fabric is completing the purchase of the green star-rated office building at 110 Carlton Gore Rd in Auckland for $213m - $4.5m below the original contracted price.
Fabric is also selling four B-grade office buildings to Mansons CGR for a total of $84m. The valuation of Fabric's portfolio is $829m, up $129m, with green buildings making up 74 per cent. Stride's share price was up 2c to $2.
Solly said the purchase of an innovative Mansons-built building will tidy up and improve Stride's portfolio and bring in more investors.
Pushpay Holdings rose 5c or 4.5 per cent to $1.16; Arvida was up 4c or 2.38 per cent to $1.72; Hallenstein Glasson increased 10c to $6.65; Synlait Milk collected 11c or 3.26 per cent to $3.48; and Fonterra Shareholders' Fund gained 8c or 2.41 per cent to $3.40.
Vista Group climbed 10c or 5.71 per cent to $1.85; Harmoney increased 6c or 4.17 per cent to $1.50; Green Cross Health gained 12c or 8.7 per cent to $1.50; Heartland Group Holdings was up 4c to $2.29; and Rakon collected 5c or 3.05 per cent to $1.69.
Move Logistics improved 7c or 5.69 per cent to $1.30; The Colonial Motor Company was up 19c or 1.86 per cent to $10.39; and Scott Technology gained 10c or 3.13 per cent to $3.30.
Freightways declined 11c to $12.31; DGL Group fell 13c or 3.49 per cent to $3.60; Oceania Healthcare was down 4c or 3.57 per cent to $1.08; and Third Age Health Services decreased 5c to $2.75; Bremworth slumped 4c or 7.84 per cent to 47c; Cannasouth was down 2.5c or 6.67 per cent to 35c.
Pacific Edge, a long-term growth stock, was down 4c or 3.88 per cent to 99c after a New Zealand broker cut the rating from a buy to hold.
TruScreen Group rose 0.009c or 12.86 per cent to 7.9c after telling the market that a China-based cervical cancer screening trial had validated the superiority of its method. The Chinese Obstetricians and Gynaecologists Association screened 15,661 women over three years.
Mining services provider SMW Group is delisting from the NZX after nearly two years. SMW's revenue was lower than expected because of the delay in mining projects in the Australian Bowen Basin. SMW could not reduce debt and staying listed was not commercially feasible. Its share price was unchanged at 95c.
