Stock index snaps downward streak

Tegel Group Holdings share price rose 2.1 per cent to close at $1.48. Photo / Kenny Rodger

New Zealand shares rose for the first time in a week, led by Sky Network Television, Tegel Group Holdings, and Mainfreight.

The S&P/NZX 50 Index rose 7.32 points, or 0.1 per cent, to 7,124.24. Within the index, 26 stocks rose, 19 fell and five were unchanged. Turnover was $127.9 million.

Overnight, Russia's president Vladimir Putin said the country would support joint measures mooted by Opec to reduce oil production, which would reverse the global slump in prices.

The price of Brent crude oil hit its highest level since October 9, 2015, reaching US$53.73 a barrel, before paring those gains.

"That's flowed through to a gain in commodities which has pulled the Australian market up, and we've kicked on a bit since midday, which is the time when Australia opened," said James Smalley, director at Hamilton Hindin Greene.

Today snapped a five-session downwards streak for the local market, driven by the likelihood the US Federal Reserve will raise interest rates this year.

"Our market had had a pretty strong bout of profit taking post earnings season, lead by foreign investors taking a little bit of profit off the table. Our market is an emerging market for big investors, and they are coming back in and looking to do a bit of bargain hunting," Smalley said.

"We've seen quite a reasonable amount of sell the fact, but it looks like maybe the market has reached a short-term plateau. Lots of the companies are still on very, very good dividend yields relative to bank deposits, [and] investors are getting back down to fundamentals."

Sky Network Television led the index, up 3.1 per cent to $4.99. Tegel Group Holdings rose 2.1 per cent to $1.48 and Mainfreight gained 1.8 per cent to $18.

Fisher & Paykel Healthcare was the worst performer, down 2 per cent to $9.85. Fletcher Building fell 1 per cent to $10.12 and Z Energy dropped 0.9 per cent to $7.96.

Restaurant Brands declined 0.5 per cent to $5.67. The NZX-listed operator of franchises including KFC, Pizza Hut, Carl's Jr, and Starbucks has agreed a deal with the Unite Union in which workers' hours and shifts will be guaranteed on a permanent basis.

The new collective agreement moves from a formula in which hours were guaranteed at 80 per cent of those worked in the previous three months, to one in which all hours were guaranteed and shifts would be fixed.

Outside the benchmark index, Seadragon was unchanged at 1c. Christchurch's rich-lister Stewart family has built up a substantial stake in the fish oil manufacturer, exercising more than half the rights issued.

The company wants to raise up to $12.5m at 0.8c a share and has raised $8.8m with about 70 per cent of the rights exercised, it said. It will offer the unexercised rights to eligible investors in a shortfall bookbuild which will close on October 13.