New Zealand shares joined a broad gain across Asia with exporters leading the charge, as Chinese markets were buoyed by increased government support and ahead of Friday’s Bank of Japan meeting which will likely raise interest rates for the world’s fourth-biggest economy.
The S&P/NZX 50 index rose 22.94 points, or 0.2% to 13,060.08, snapping three days of decline at a time when global markets were largely stronger on the flurry of policy decisions coming out of the new Donald Trump-led administration in the US.
The Shanghai Composite gained 1% after the People’s Bank of China announced more policy to support for Chinese stock markets and Beijing directed state insurers and commercial funds to direct more money to mainland markets.
Fisher & Paykel led the local market higher, up 2.7% at $39.32, with exporters gaining in the vacuum of tariff talk from the White House. Vista Group International rose 2.5% to $3.24, Rakon advanced 1.7% to 60 cents and The a2 Milk co advanced 0.8% to $6.54.
Travel and tourism stocks were broadly stronger after Statistics New Zealand figures showed few signs that the increased visitor levy was deterring foreign travellers. Air New Zealand gained 1.7% to 61.5 cents, Serko increased 1.6% to $3.71, and Auckland International Airport advanced 0.2% to $8.70. SkyCity Entertainment Group fell 1.4% to $1.41.
“Annual visitor numbers ticked up to 3.263 million persons but remain about 16% below the circa 4 million pre-covid highs,” ASB Bank senior economist Mark Smith said in a note. “Chinese visitor numbers remain particularly weak.”
Contact Energy increased 0.1% to $9.48 after securing new gas supply from OMV until 2032, while delivering a mixed operational update for December.
The rising sun
The kiwi dollar remained in a tight range trading at 56.65 US cents at 5pm in Auckland from 56.67 cents at 7am and 56.56 cents yesterday.
The Bank of Japan wraps up its latest policy meeting on Friday and is expected to raise its key rate a quarter-point to 0.5% in what would be its biggest increase since February 2007. The kiwi rose to 88.65 yen from 88.19 yen yesterday.
Summerset posted the biggest decline on the NZX50 as it fell 3.5% to $12.74, while Gentrack was down 2.6% at $12.03 and Spark New Zealand slipped 2% to $2.945.
Tower was the most heavily traded stock on a volume of 3.1 million shares, with a single trade of 2.8 million shares changing hands at $1.25. The shares gained 0.8% to $1.275, with chief financial officer Paul Johnston tapped to act as chief executive once Blair Turnbull departs on Feb 12.
Livestock Improvement Corp’s shares – which are restricted to farmers who use the dairy genetics firm’s services – climbed 5.3% to $1 after it reported a 17% increase in underlying first-half earnings
Meanwhile on the USX, the Cushing family’s H&G declared its takeover bid for Rural Equities unconditional, waiving the remaining conditions having crossed the 90% threshold to mop-up remaining shareholders.
Across the Tasman, the takeover battle for Insignia Financial heated up, with Bain Capital matching the A$4.60 per share offer by rival CC Capital.
