New Zealand’s benchmark stock index outperformed most of Asia with blue-chip names leading the bourse higher as rising government bond yields and a strong greenback keep investors uneasy about the pace of interest rate cuts.
The S&P/NZX 50 index rose 61.54 points, or 0.5% to 12,671.63, beating most major indices in the Asian trading session, with Australia’s S&P/ASX 200 down 0.6% and Japan’s Nikkei 225 down 1.2% in afternoon trading.
Still, the local bourse was down for a second week in a row, falling 0.4% in what’s been a sluggish start to December as the South Pacific heads into the traditional summer slowdown.
Meridian Energy led the benchmark index higher, rising 2.5% to $5.72 and Contact Energy gained 2.2% to $9. The South Island generators are set to benefit from an upgraded Cook Strait cable, with Transpower signing a $450 million deal with Prysmian to replace the inter-island link. Vector rose 2.1% to $3.90 and Genesis Energy gained 1.9% to $2.18.
Mercury NZ posted the biggest decline on the day, sinking 6.1% to a 13-month low $5.72.
Among other blue chip stocks to gain, Summerset Group Holdings advanced 2.4% to $13, Port of Tauranga was up 2.2% at $6.55, SkyCity Entertainment Group rose 2.1% to $1.44 and Air New Zealand climbed 1.6% to 56.5 cents.
Spark New Zealand rose for a second day, up 1.1% at $2.89 on a heavy volume of 6.9 million shares. Milford Asset Management lifted its stake in the telco to 6.2%, having cross the 5% threshold to be a substantial shareholder last month.
Chorus was unchanged at $9.02 after the Commerce Commission set the broadband network operator’s four-year revenue cap at $4.1 billion
Stock market operator NZX was also among the day’s gainers, rising 1.4% to $1.47 after commerce minister Andrew Bayly proposed a raft of changes to make listing easier and cheaper.
Vital Healthcare Property Trust fell 2.5% to $1.79 and Turners Automotive Group decreased 2.1% to $5.50.
High-tech components maker Rakon fell 4.8% to 59 cents after chief technology officer Brent Robinson announced his departure from the executive, although he’ll stay on the board.
The kiwi dollar slipped to 57.64 US cents at 5pm in Auckland from 57.84 cents at 8am, and down from 58.06 cents yesterday.
Government data today showed international visitor numbers were still weak in October and annual net migration inflows remained at two year lows, while the BNZ-Business NZ performance of manufacturing showed activity shrank in November.
Reporting by Paul McBeth. Image from Curious News.
