Sharemarket rebounds 1.3% in late trading wave
The stock market rebounded from a 19-month low in a late surge as investors shuffled their portfolios before fuel retailer Z Energy was removed from the benchmark.
The benchmark S&P/NZX 50 index gained 1.3%, or 148.96 points, to 11,875.35 on Thursday. This follows a 0.7% drop on Wednesday to the lowest level since September 2020.
“Investors were rebalancing into some blue chip names before Z Energy exited the NZX 50,” said Greg Smith, head of retail at Devon Funds Management.
Z Energy recorded the largest trading in the market by volume and value. Trading in the stock was suspended at the close of trading on Thursday in preparation for the $1.97 billion takeover by Australian oil company Ampol.
* Sharemarket falls as investors worry about inflation, growth and interest rates
* S&P/NZX50 rises 0.5%, Air New Zealand shares up 4.9%
* S&P/NZX50 index makes a late breakout in the black, Ebos gains 3.7%
Shares of Z Energy closed at $3.77, compared to the repurchase price of $3.782, which is expected to be paid on May 10.
Retailer The Warehouse Group rose 5.1% to $3.52. The stock will replace Z Energy on the benchmark on Friday, prompting investors who follow the index to buy the shares.
Smith said investors were buying a wide range of stocks that had become cheaper due to market weakness.
“Dip buyers are out in force,” he said. “It’s quite wide.”
NZ King Salmon posted the biggest gain in the market, up 6.9% to 31 cents. The salmon farmer’s shares have been hammered since the company earlier this month reported an annual loss of $73 million and announced plans to sell $60 million worth of stock to fund repayment of the debt.
Travel-related stocks gained on business optimism will pick up as borders reopen.
RV company Tourism Holdings rose 5.3% to $3, travel software company Serko gained 4.2% to $5, national carrier Air New Zealand rose 1.1% to 88.5 cents and Auckland International Airport edged up 0.8% to $7.81.
The Australian Competition and Consumer Commission (ACCC) has released its statement of concerns regarding Tourism Holdings’ plan to merge with Australian rival Apollo Tourism & Leisure, noting that the merger could reduce competition in the rental market of motorhomes. The ACCC expects to make a final decision in July after reviewing the submissions.
Smith said that although the ACCC’s comments were negative, there may still have been doubts about competition issues and there was still the possibility of bids, so the merger was not ” not dead in the water”.
The Commerce Commission is expected to issue a statement on the unresolved issues on Friday.
Fast-food operator Restaurant Brands, which owns local franchises of KFC, Pizza Hut, Taco Bell and Carl’s Jr, jumped 5.6% to $13.08 after reporting that its first-quarter global sales increased by 6%, while its sales in New Zealand had increased by 2.9%.
“KFC sales globally have held up well during the pandemic, although they have been impacted by in-store dining lockdowns,” Smith said. “It’s been quite resilient over the period and I suspect consumers are regaining appetite as we reopen.”
Private hospital owner Vital Healthcare Property Trust has been suspended from operations as it raises $200million from the sale of new units to help fund its South Island expansion. The units last traded at $3.12.
Fisher & Paykel Healthcare fell 1.9% to $21.24 as investors expected demand for its respiratory aids to slow as the pandemic subsides.
The healthcare stock has fallen 35% this year and lost its place as New Zealand’s biggest listed company to energy company Meridian, with Meridian now worth $12.4 billion from $12.3 billion. billion dollars for Fisher & Paykel.
Good Spirits Hospitality was unchanged at 7.5 cents after announcing it had suspended its $21.3 million takeover of The Nourish Group due to Covid-19 restrictions.
Asian stocks posted moderate gains on Thursday after Wall Street stabilized after a sell-off in tech stocks the day before.
– With PA