New Zealand stocks break losing streak

New Zealand stocks were up broadly as nearly all stocks rose as investors bought heavily sold stocks as market interest rates fell slightly.

Monday May 31, 2021, 6:06 p.m.

by BusinessDesk

The S & P / NZX 50 Index gained 121.84 points, or 1%, to 12,304.09. Within the index, nine stocks fell and 39 rose.

The index ended last week down almost 9% since the start of the year after having only five positive days last month – while the US indices gained 1 to 2% over the past week and are up more than 10% this year.

This week, investors seemed to sense an opportunity and drove the vast majority of stocks up in a broad rally.

The port of Tauranga led the market higher, jumping 3.9% to $ 7.49. Tourism Holdings climbed 3.6% to $ 2.58, followed by Pacific Edge which climbed 3.6% to $ 1.19 – just below its all-time high.

In the domestic rate market, bond yields and swap rates fell as traders digested the Reserve Bank of New Zealand’s plan to slowly start raising rates from next year.

Power generators were all stronger: Contact Energy rose 2.2% to $ 7.90, Genesis Energy rose 2.1% to $ 3.44, and Meridian Energy rose 1.6% to $ 5.53.

ANZ’s May Business Outlook Survey was positive from April, with business confidence up 4 points to 1.8% net and business outlook up 5 points to 27.1%.

Fisher & Paykel Healthcare rebounded from a three-month low, recovering 2% to hit $ 29.79. The title was sold down after the exporter refused to give forward guidance.

Dairy companies were among the handful of stocks that failed to make any gains.

A2 Milk Company said today that it is aware of reports of a possible class action lawsuit that may allege the company violated continuous disclosure rules by not degrading its profits sooner.

The milk marketing company said it had complied with all applicable disclosure obligations, but its shares fell 0.3% to $ 5.86.

Shares of Synlait Milk fell 1% to $ 3, after raising its milk payment forecast for 2020-2021 to $ 7.55 per kilogram of milk solids, from $ 7.20 kgMS.

“Commodity prices have continued to exceed our expectations, mainly due to strong demand from China, combined with a relatively stable exchange rate, which means we are delighted to increase our forecast for this season and next.” , said chief executive John Penno.

The Kiwi dollar was trading at 72.52 cents US by 3pm in Wellington, against 72.77 cents last Friday.

The trade-weighted index was at 75.21 by 3pm, down from 75.51. The kiwi was trading at 93.88 Australian cents against 93.96 cents, 79.56 yen against 79.98 yen, 59.44 euro cents against 59.73 cents, 51.08 British pence against 51.30 pence and 4 , 6157 Chinese yuan against 4.6399 yuan.

Tags: Market Close

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