New Zealand shares rose in subdued holiday trading, keeping the S&P/NZX 50 Index on track for an annual gain of about 22 per cent, as US tax cuts lifted sentiment for equities and for companies that do business in the US, such as Tourism Holdings.
The S&P/NZX 50 index gained 32.1 points, or 0.4 per cent, to 8,408.53. Within the index, 31 stocks rose, 14 fell, and five were unchanged. Turnover was a lighter-than-normal $54 million.
Tourism Holdings gained 3.3 per cent to $5.96. The shares of the campervan rentals company have climbed more than 8 per cent since it said tax reform in the US will boost annual profit by between $2.3m and $3m based on the current distribution of its earnings across US states, current state tax rates, and exchange rates.
The rental motorhome operator anticipates its total effective tax rate in the US will fall to about 27 per cent from 40 per cent.
"Tourism Holdings is one of the few that's said the tax reforms are likely to be positive for them," said Chris Timms, an adviser at Craigs Investment Partners. "That's why we've seen them rise - plus a tourism sector that's still pretty buoyant."
