MARKET CLOSE: NZ shares recoup Trump losses 11 Nov 2016
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Unemployment rate falls from 7.1 to 6 percent Recruitment
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
Thursday 10 November 2016 05:30 PM
MARKET CLOSE: NZ shares recoup Trump losses, gains led by A2 Milk, Heartland Bank, Fletcher Building
By Sophie Boot
Nov. 10 (BusinessDesk) - New Zealand shares regained some of yesterday's losses, led upwards by A2 Milk Co, Heartland Bank, and Fletcher Building, while Auckland International Airport declined.
The S&P/NZX 50 Index rose 1 percent, to 69.51 points, to 6,733.72. Within the index, 27 stocks rose, 20 fell and four were unchanged. Turnover was $191 million.
The local benchmark index dropped 3.3 percent yesterday, turning to a loss around 3pm as it became increasingly apparent the US public had voted for Donald Trump as their new president. This morning, it bounced by as much as 3.4 percent after positive leads from Wall St and European markets but has pared those gains as the day wore on, lagging behind Asian markets this afternoon.
At 5:05pm, Japan's Nikkei 225 was up 5.9 percent, Hong Kong's Hang Seng had gained 1.9 percent, and Australia's S&P/ASX 200 rose 2.8 percent.
"Our friends across the Tasman are trading significantly higher, it's a strong day for resources which is driving their market, and we're crimped a bit because of the interest rate sensitive stocks we have," said Peter McIntyre, investment adviser at Craigs Investment Partners. "We've seen swap rates both here and Australia really drive to the upside, on the basis that some of Trump's policies are very inflationary, and the Reserve Bank saying unless something dramatic happens we're unlikely to cut rates again.
"When longer-term bond yields rise, we're seeing a sell-off in our more interest rate sensitive stocks, and Auckland Airport is a good example of that - it's a quality asset, but it's weaker," McIntyre said. Auckland International Airport was the third-worst performer on the index today, down 2.6 percent to $6.32.
New Zealand's two-year swap rate rose five basis points to 2.2 percent and the ten-year swaps gained 25 basis points to 3.0875 percent.
A2 Milk Co led the index, up 9.2 percent to $2.14. Yesterday it dropped 4.9 percent to $1.96. On Tuesday, the milk marketer said its first quarter sales of $112.5 million met expectations with sales driven by growth in infant formula and milk.
"That story of exporting to China hasn't gone away because of Trump," McIntyre said. "They've done it again, that switch trade below and above $2. Their first quarter update reaffirmed their position but was a bit soft to be fair, but the market likes the story and it continues to be well bid on strong volumes. It's got a lot of liquidity so if investors need to reduce quickly, they're able to, and we've seen the cut and thrust of the stock again. If it was to break out above $2.20, the likelihood is it would go even higher from there."
Heartland Bank rose 6.3 percent to $1.51, while Australia & New Zealand Banking Group gained 5.9 percent to $28.95 and Fletcher Building advanced 5.5 percent to $10.02.
Meridian Energy was the worst performer, down 3.4 percent to $3.455, while Precinct Properties dropped 2.8 percent to $1.20.
Vital Healthcare Property Trust shed 2 percent to $2.01. The Auckland-based hospital and healthcare property developer and investor, which raised $160 million in July to help fund its growth strategy, says it's in a strong position for growth and has A$77.9 million in six current developments across Australia.
Goodman Property Trust dropped 0.8 percent to $1.21. The NZX-listed commercial and industrial property investor,lifted first-half profit 38 percent, largely due to valuation gains on its investment properties, and maintained its full-year guidance.
Z Energy fell 0.1 percent to $7.40. The service station operator raised its first-half dividend as it posted a 22 percent gain in earnings and a 57 percent jump in fuel volumes following its acquisition of Chevron New Zealand's Caltex and Challenge! brands.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more