WELLINGTON: New Zealand shares rose to their highest level since early October, as A2 Milk’s bull run continued and the market shrugged off Asian jitters ahead of a potentially tense meeting between US President Donald Trump and his Chinese counterpart Xi Jinping that starts Thursday.
The S&P/NZX 50 index increased 24 points, or 0.4 percent, to 7,289.53. Within the index, 22 stocks gained, 10 fell and 18 were unchanged. Turnover was $175 million.
Suzanne Kinnaird, an investment adviser for Forsyth Barr Dunedin, said while “you never know what Trump might tweet” the New Zealand market isn’t following other Asian markets down as investors continue to show keen interest in some key stocks.
A2 Milk “has some solid momentum and is continuing to find favour,” she said. The stock rose 3.3 percent to $3.17, continuing to tick higher after what seemed to be a relaxation by Chinese authorities on imports via the so-called ‘grey channel’ or daigou last month.
Tegel Group rose 2.7 percent to $1.16 after it told investors and analysts at the Credit Suisse / First NZ Capital Food and Beverage Conference in Sydney it is well-positioned for export growth and reiterated its full year guidance.
Summerset added 0.9 percent to $5.40 as investors remained cheered after the company said Wednesday it had increased sales of occupation rights at its retirement villages by 41 percent in the first quarter and said the remainder of the year “looks positive”.
In the other direction, Manuka honey company Comvita shed 4.2 percent to $6.80. Kinnaird noted the stock bounced on the relaxation by Chinese authorities “but since then they have come back out and said things are worse than we thought.” On Wednesday Comvita warned it will post an operational loss this year due to weaker than expected trading and as a poor season dents the honey harvest in New Zealand.
Xero shed 0.5 percent to $19.90. Interests associated with tech billionaire Peter Thiel sold about 1.1 million shares in Xero, reducing its overall holding to below 5 percent, according to a statement on the NZX.
Among small caps, Scott Technologies gained 1.8 percent to $2.85. This week the company posted a 48 percent jump in first-half profit and chief executive Chris Hopkins says a global drive for increased automation means the industrial robotics firm is in a “sweet spot”.
