NZ shares head for strongest performance in four years - market close

Restaurant Brands was up 11c or 2.74% to $4.12as the S&P/NZX 50 Index closed at its second-highest level this year. Graphic / NZME

New Zealand shares, and those offshore, are enjoying the Santa rally, with the local market closing at its second-highest level this year.

The S&P/NZX 50 Index climbed strongly from midday and closed at 13,205.1, up 130.36 points or 1%. The index reached 13,212.92 on November 27.

The index has risen more than 12% for the year and is heading for its best performance in four years after rising 13.92% in 2020 thanks to the Covid financial stimulus.

The light holiday trading saw 15.37 million shares worth $65.63m change hands.

Greg Smith, head of retail with Devon Funds Management, said it was “oh so quiet on the announcement front but there have been some positive moves in the so-called Santa rally”.

“The local market has hit a key milestone of going above 13,000 points and things are shaping up for the rally to continue through to New Year’s Eve on the thin trading,” said Smith.

The Santa Claus trading window, historically a bullish period for stocks picking up the festive holiday mood, spans the last five trading days of the year and the first two of the new year.

The Australian S&P/ASX 200 Index and Japanese Nikkei 225 joined the festive spirit, having risen 0.36% to 8250.6 points and 1.82% to 40,288.02 respectively at 5.45pm NZ time.

AFP said China’s plans for massive bond issuances in 2025 bolstered investor sentiment. And Bank of Japan governor Kazuo Ueda regional refrained from signalling a potential interest rate hike next month.

Smith said Chinese industrial profits fell for the fourth straight month – down 7.3% in November compared with the same period last year. The stimulus measures have yet to provide a meaningful boost to corporate earnings and this has prompted hopes for further government economic support.

The US markets’ latest trading was more subdued, having already enjoyed a Santa spurt. The Dow Jones Industrial was up 0.066% to 43,325.8 points; S&P 500 was down 0.041% to 6037.59; and Nasdaq Composite eased 0.054% to 20,020.36. But Rocket Lab climbed a further 6.92% to US$28.44 (NZ$50.58).

The S&P 500’s 1.1% rise on Christmas Eve was its best performance since 1974 and the index has increased 1.8% this week. The Dow Jones is up 1% and Nasdaq has increased 2.3%.

At home, Fisher and Paykel Healthcare was up 26c to $38.60; Ebos Group increased 65c or 1.74% to $37.95; Auckland International Airport gained 23c or 2.7% to $8.75; and Spark added 4.5c to $2.93.

Fletcher Building was up 10c or 3.58% to $2.89; Mainfreight collected 60c to $73; Skellerup increased 20c or 4% to $5.20; Kiwi Property added 2.5c or 2.72% to 94.5c; and SkyCity collected 4c or 2.84% to $1.45.

In the energy sector, Contact gained 8c to $9.27, and Manawa decreased 9c to $5.50.

Retirement village operators Ryman Healthcare increased 19c or 4.27% to $4.64, and Summerset was up 25c or 1.93% to $13.20.

Restaurant Brands was up 11c or 2.74% to $4.12; Stride Property increased 4c or 3.03% to $1.36; Tourism Holdings gained 4c or 1.94% to $2.10; NZME added 2c or 1.98% to $1.08; and Air New Zealand was up 1c or 1.71% to 59.5c.

Third Age Health gained 8c or 3.54% to $2.34; Green Cross Health increased 2c or 2.44to 84c; Radius Residential Care rose 1.4c or 7.33% to 20.5c; Pacific Edge improved 0.007c or 5.69% to 13c; and Santana Minerals added 3c or 5.83% to 54.5c.

Hallenstein Glasson shed 16c or 1.89% to $8.31; Port of Tauranga was down 12c or 1.86% to $6.33; Sky TV decreased 5c or 1.84% to $2.67; and Delegat Group fell 20c or 4.08% to $4.70.

Turners Automotive was down 10c or 1.85% to $5.30; Scott Technology declined 7c or 3.04% to $2.23; Vital Healthcare Property Trust eased 4c or 2.19% to $1.79; and Savor decreased 2c or 8.7% to 21c.