Buyers return to leading NZ stocks

  • 14/07/2015
Buyers return to leading NZ stocks

The New Zealand sharemarket has snapped four days of declines, as the prospect of a Greek debt deal calmed global markets and stoked investors' demand for riskier assets such as stocks.

The S&P/NZX 50 index advanced 44.18 points, or 0.8 percent, to 5750.88 today.

Within the index, 28 stocks gained, nine fell, and 13 were unchanged. Turnover was $138 million.

A provisional agreement opened the way for Greece to receive an 86 billion euro funding line and remain in the Eurozone, though any deal is contingent on being ratified by the country's Parliament.

Contact Energy led gainers on New Zealand's benchmark index, rising 2.9 percent to $5.05, followed by property investor Argosy Property, which rose 2.8 percent to $1.11, and Spark New Zealand, up 2.3 percent to $2.84.

Fletcher Building advanced 1.9 percent to $8.03.

"It takes at least one of the risks off the table as far as the EU [European Union] actually coming to a decision, and that could have been relatively dire, so that's good news," said James Lindsay, of Nikko Asset Management in Auckland.

"A number of those names [of companies that gained today] have been pretty weak over the last few days, and it's probably the ones some of the international investors have been selling on global risk-off trades."

Auckland lines company Vector was the biggest decliner on the day, falling 1.32 percent to $3.30, followed by pay-TV operator Sky Network Television, which slipped 1.1 percent to $6.10.

NZN