New Zealand stocks regained their positive tone today, with gentle rises across the board in light trading, affected by Wellington Anniversary Day and subdued global markets because of the Martin Luther King long weekend in the US.
The NZX 50 Index rose 21 points, or 0.5 percent, to 4185.18. Within the index, 31 stocks rose, 11 stocks fell, and eight were unchanged. Volume was relatively light, compared to trading last week, with a total value of $109.379 million.
Telecom led the index higher, followed by Fletcher Building.
It was also the first day the Fonterra Shareholders Fund was included in the index, at a weighting of 1.56 percent. After running up last week, FSF units were off 0.54 percent on the day, to close at $7.30.
Trade Me, whose index weighting increased to 3.6 percent, was down 0.74 percent to $4.05, after rising ahead of the index up-weight.
Index heavyweights Fletcher Building and Telecom, making up almost 25 percent of the index between them, were up 1.64 percent to $9.30 and 0.85 percent to $2.36, respectively.
"Looking at where portfolios are at the moment, Telecom offers reasonable yield, while Fletcher Building will benefit from recovery in New Zealand and Australia," says Shane Solly, at Mint Asset Management.
Steel & Tube, which may also benefit from the Christchurch post-quake rebuild spend, was third strongest gainer on the day, up 2 percent to $2.55, with the strongest rise going to childrens' clothing manufacturer Pumpkin Patch, up 3.01 percent to $1.37, and aged care provider Metlifecare, up 2.2 percent to $3.25.
The Warehouse Group came back up off recent lows to $3.15, up 0.61 percent.
"The theme from retail sentiment is that the Christmas and New Year trading was OK," Mr Solly says.
The proof would be in the mid-year earnings season, which is due to kick off in a fortnight, and will include the crucial Christmas and Boxing Day sale periods.
However, Mint would be "watching for companies coming out saying, 'err, we didn't quite make it'", especially if last year's pattern is repeated in 2013. "Expectations across the market have been pared back a long way," he says.
Expectations are for "high single digit, low double digit" profit growth, at best.
Otago and Philippines goldminer Oceana Gold led falls, down 1.15 percent to $3.45.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Pulse Energy investors get mixed messages on board's takeover view
- Scentre Group to sell three Westfield malls to NZ firms for $549m
- Joyce associates openly talking about leadership change
- Court protection sought for latecomers to James Hardie leaky homes class action
- Kelsey’s bid to put rocket under Groser fails
Most listened to
- Tim Hunter on why Veritas is doing it the hard way
- Matthew Hooton on whether Steven Joyce will be the next national leader
- Rodney Hide on why all city planners should be fired
- Rob Hosking breaks down the political and economic week that was
- "A tragedy" - David Farrar on his disappointment with Simon Bridges
- New F&P product pipeline exciting, says Macquarie senior investment adviser Brad Gordon
- Taupo Motorsport Park executive director Tony Walker on the park's rebranding
- NZIER senior economist Christina Leung on why she does not think the OCR will hit 2%
- NBR's Cameron Officer talks about the NBR Car of the Year 2015
- John Barnett on Brewer: ‘Boy, has he got a bit to learn’
- Tech commentator Paul Brislen discusses the Concept Envirochip ad
- Jason Walls breaks down the week's biggest news in macroeconomics