NZ shares higher on gains in large caps
A better global mood has cheered investors, helping leading shares post gains.
19 May 2017
New Zealand shares rose, led by Kathmandu and Air New Zealand, as improving global sentiment sparked interest in some of the biggest companies on the bourse.
The S&P/NZX 50 Index rose 20 points, or 0.3 per cent, to 7,392.11 on Friday. Within the index, 22 rose, nine were unchanged and 19 fell. Turnover was $103 million.
Stocks were largely positive across Asia after an overnight rebound on Wall Street.
Hamilton Hindin Greene broker Grant Williamson said the better global mood had cheered investors.
"We had seen a little bit of profit taking and that's obviously dried up today and we've had a few investors coming into the market."
Kathmandu rose 3.7 per cent to $1.99, while Air New Zealand gained 2.5 per cent to $2.87. Fletcher Building added 1.9 per cent to $8.14.
"Blue chip stocks seem to be in good demand today," said Mr Williamson.
News that migration remained at a record high in April and short-term visitor arrivals also hit a new record also helped support Air New Zealand.
Fisher & Paykel Healthcare rose 1 per cent to $10.17. Earlier this week investors were cheered by news that ResMed withdrew its complaint against F&P Healthcare in the US International Trade Commission, although it plans to replace it with a new action and is still pursuing its patent dispute with the New Zealand maker of breathing masks in several other jurisdictions.
AFT Pharmaceuticals rose 1.7 per cent to $2.34 after it obtained regulatory approval to sell its Maxigesic painkiller in nine additional European countries, a move that lets it ramp up international sales of its tablets.
Xero continued to power higher on heightened interest as the company moves toward break-even. It ended up 0.9 per cent at $23.40.
Briscoe Group was unchanged at $4 after the retailer said it would pursue a secondary listing on the Australian Securities Exchange next week in a bid to broaden its investor base.
In the other direction, Sky Network Television led the market lower, shedding 2.0 per cent to $3.51.
"It continues to drift off following the rejection of the merger," said Mr Williamson.
Sky TV and Vodafone New Zealand this week detailed their appeal against the Commerce Commission's decision blocking the $3.44 billion merger and uncertainty remains.
Ryman Healthcare fell 1.9 per cent to $8.47 after it posted a record annual profit, adding to its run of 15 years of earnings growth, as the hot property market underpinned gains from resales of its occupancy rights.
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