By Jonathan Underhill
New Zealand shares rose after ANZ's decision to cut its dividend was taken as a sign of prudent management.
Air New Zealand rose after saying it was well-placed to foot it in a competitive air travel market and Tegel Group Holdings rose in its NZX debut.
The S&P/NZX 50 Index gained 51.2 points, or 0.8 percent, to 6,843.01. Within the index, 31 stocks rose, nine fell and nine were unchanged. Turnover was $138 million.
ANZ Bank gained 5.7 percent to $26.98 on the NZX. Australia's fourth-largest lender posted a 24 percent decline in first-half cash profit to A$2.78 billion, after taking A$717 million of charges such as restructuring costs, an accounting change for software capitalisation and an impairment against its Malaysian bank. It also cut the first-half dividend by 7 per cent to 80 Australian cents.
"They've provided some certainty about whether the dividend will be sustained," said Greg Easton, an adviser at Craigs Investment Partners.
Westpac Banking Corp rose 2 percent to $33.03 today.
Air New Zealand rose almost 4 percent to $2.61. The airline released a presentation for an investor briefing today in which it indicated that 2017 earnings won't match the $800 million it has forecast for 2016 as it faces increased competition and gets less benefit from foreign exchange hedging.
Vector led gains among utility-type companies, rising 2.7 percent to $3.40. Mighty RiverPower rose 2.2 percent to $2.995 and Trustpower gained about 2 percent to $7.80. Utility stocks were part of Monday's selloff.
Port of Tauranga rose 2.2 percent to $18.91 and retailer Kathmandu Holdings rose 1.9 percent to $1.59. A2 Milk gained 1.7 percent to $1.78. Summerset Group climbed 1.4 percent to $4.42, Trade Me Group gained 1.3 percent to $4.64 and Auckland International Airport rose 1.3 percent to $6.19.
Tegel ended its debut day on the NZX at $1.63, a 5.2 percent gain on its initial public offering price of $1.55. Some 29 million Tegel shares changed hands.
CBL Corp was unchanged at $2.40.