MARKET CLOSE: NZ shares rise, ANZ, Westpac gain while Spark drops

Wednesday 2nd March 2016

New Zealand shares rose as banking stocks gained on both sides of the Tasman. Australia & New Zealand Banking Group and Westpac Banking Corp gained while Spark New Zealand dropped.

The S&P/NZX 50 Index rose 32.18 points, or 0.5 percent, to 6,313.08. Within the index, 32 stocks rose, 13 fell and five were unchanged. Turnover was $151.7 million.

Banks led the index, with ANZ rising 7.2 percent to $26.58, Westpac up 6.5 percent to $33.64 and Heartland Bank gaining 2.6 percent to $1.19. The banking sector has been under pressure this year, with ANZ down 16 percent so far this year, Westpac falling 11 percent and Heartland down 12 percent.

"The bank sector has been weak for the past few months, it's a global phenomenon but they've bounced back very strongly today," said James Lindsay, senior portfolio manager at Nikko Asset Management. "It's very much related to what's been happening overseas, as far as risk-on or risk-off that's been going on with financials. The bank sector is trading on significantly lower multiples than it was six months ago."

Shares rose across Asia this afternoon following gains in oil prices overnight, and spurred along as positive economic data from Australia and the United States helped calm fears of a global slowdown. Australia's S&P/ASX 200 advanced 2.3 percent, while Japan's Nikkei 225 rose 4.3 percent and Hong Kong's Hang Seng gained 2.7 percent.

Coats Group rose 3.6 percent to 57 cents, extending its rally since reporting last week that it would retain funds in a bid to settle a dispute with the UK Pensions Regulator.

Trade Me Group advanced 3.6 percent to $4.55, a price not seen since October 2013.

"If you look at the Aussie and Kiwi markets today they've both been pretty strong, and Trade Me's one of those names that's probably been held higher by Australian institutions," Lindsay said.

Air New Zealand rose 3.3 percent to $2.86, Z Energy gained 2.5 percent to $6.65, and Skellerup Holdings grew 2.3 percent to $1.33.

Spark New Zealand was the biggest loser, down 2.7 percent to $3.43. Yesterday, Spark rose to $3.525, its highest since July 2007, and had gained about 10 percent since announcing a special dividend on Feb. 18.

"It's been very strong for quite a few sessions, and I'd imagine it's some people taking some profit," Lindsay said.

SkyCity Entertainment Group dropped 1.4 percent to $4.36, and Steel & Tube Holdings fell 0.9 percent to $2.31.

Outside the benchmark index, Wynyard Group rose 4.7 percent to 99 cents. Major shareholders of Wynyard will effectively get a further 4 percent discount by way of a fee payable in shares for committing to the crime-fighting and security software developer's deeply discounted $30 million rights offer.

Rakon shares gained 4.4 percent to 24 cents. The high-tech components manufacturer has increased its stake in Australian start-up Thinxtra to almost a fifth as it looks to boost its exposure in expanding machine-to-machine connectivity, known as the Internet of Things.

Intueri Education Group shares rose 8.2 percent to 46 cents. The Auckland-based company, whose Quantum Education Group unit is under investigation by the Serious Fraud Office, has been ordered to pay another $150,000 in reparation and costs to the family of the student who died at its diving school in 2014. The company had taken a $175,000 provision in relation to the charge as at Dec. 31, and had recognised provisioning expenses of some $400,000 in the 2014 calendar year.

Comvita climbed 8.7 percent to a record $10 after announcing a joint venture with Australian counterpart Capilano Honey to form an apiary business across the Tasman.

BusinessDesk.co.nz

Comments from our readers

No comments yet