NZ shares hit record high for 7th session

  • 11/03/2016

By Sophie Boot

New Zealand shares hit a record high for a seventh straight session, though trading was quieter after Thursday's surprise interest rate cut by the Reserve Bank.

Tower, Contact Energy and Genesis Energy gained, while Trustpower fell.

The S&P/NZX 50 Index rose 7.1 points, or 0.1 percent, to 6,515.42. Within the index, 27 stocks rose, 20 fell and three were unchanged. Turnover was $153.9 million.

The index has gained 1.5 percent this week, and has closed at a record for seven consecutive trading sessions.

Thursday saw a 0.8 percent gain after Reserve Bank governor Graeme Wheeler cut the official cash rate a quarter-point to a record low 2.25 percent and hinted at a further cut, with the kiwi dollar's consequent tumble helping companies that earn most of their revenue offshore.

"Flows seem to be driving stocks more than new news," said James Lindsay, senior portfolio manager at Nikko Asset Management.

Tower led the local index, up 4 percent to $1.82, a one-month high.

Contact Energy rose 2.7 percent to $4.57. The stock had been held back by issues around earnings and competition, Lindsay said.

Genesis Energy gained 1.7 percent to $2.05, and Mainfreight climbed 1.6 percent to $16.10.

Warehouse Group advanced 1.4 percent to $2.85.

Steel & Tube Holdings advanced 1.4 percent to $2.26, Orion Health Group rose 1.3 percent to $3.04, and Trade Me Group climbed 1.2 percent to $4.35.

Trustpower was the worst performer, dropping 1.9 percent to $7.41.

Air New Zealand fell 1.6 percent to $2.79.

Z Energy dropped 1.4 per cent to $6.50, ANZ shed 1.3 per cent to $28.44, and Fonterra Shareholders' Fund dipped 1.2 per cent to $5.61.

Outside the NZX 50, Trilogy International advanced 1.5 per cent to $3.35.

NZAX-listed GeoOp shares fell 7.9 per cent to 35 cents.