NZX 50 hits record high

  • 10/05/2016
NZX 50 hits record high

New Zealand shares rose, pushing the S&P/NZX 50 Index to a record high as Air New Zealand and A2 Milk gained while Sky Network Television extended its slide.

The S&P/NZX 50 Index rose 24.36 points, or 0.4 percent, to 6,909.41. Within the index, 26 stocks fell, 15 gained and eight were unchanged. Turnover was $151.5 million.

Air New Zealand rose 2.6 percent to $2.36. It's fallen 22.2 percent this year, tracking lower after it hit a 13-and-a-half year high in January when oil prices hit record lows.

Matt Goodson, managing director at Salt Funds Management, said weaker oil prices overnight were probably the key to the airline's improvement.

A2 Milk Co gained 5.7 percent to $1.87, Genesis Energy rose 2.2 percent to $2.14, and Metro Performance Glass advanced 1.7 percent to $1.75.

Sky TV stayed on its downward track, down 2.1 percent to $4.21, having tumbled almost 22 percent in the previous two trading days after saying subscriber numbers were expected to fall further this financial year, causing earnings next year to miss analyst estimates.

"It's still very much under pressure but you have to remember it's about where it started from when the exchange traded funds-related buyers started," Goodson said.

Dual-listed banks gained on both sides of the Tasman, with ANZ up 2.7 percent to $26.80 and Westpac gaining 2.4 percent to $34.16.

New Zealand Refining dropped 3.9 percent to $2.69, and Steel & Tube Holdings fell 1.4 percent to $2.15.

Spark declined 1.3 percent to $3.69. It will take over the naming rights for Auckland's 12,000-seat Vector Arena starting in April 2017, re-naming the venue the Spark Arena. Vector, which had held the rights for 10 years, fell 0.6 percent to $3.48.

Comvita rose 1.7 percent to $12.20. The manuka honey company boosted annual profit 68 percent as Australian sales soared, overtaking New Zealand as its largest market.

APN News & Media, which is listed on the ASX and NZX, remained halted at 72 cents. The trading halt was put in place ahead of APN's annual meeting tomorrow, and reflects a potential material transaction involving the New Zealand assets, the company said this week.