MARKET WRAP: NZ shares rise as US-NK summit wraps up
New Zealand shares were up today, as the historic Singapore summit between Kim Jong Un and Donald Trump played out, which analysts tipped to favour the North Korean leader.
The NZX50 index rose 18.5 point to 8,977.31, on turnover of $147 million.
President Trump said today he would halt US military exercises in South Korea in exchange for a pledge from Mr Kim to denuclearise the Korean peninsula.
“It looks to be something of a coup for the administration — a possible paradigm shift in the political relationship with North Korea,” says Fat Prophets head of research Greg Smith.
“They haven't really reacted despite the fact Trump is looking like a bit of a hero if he pulls this off.”
A2 Milk was the worst performer on the NZX50, plummeting 28c to $11.50, while its supplier Synlait Milk was up slightly by 1c to $10.79.
“A2 has actually come into a bit of a trading range since that May reversal so maybe it’s sort of finding its feet, establishing a new foundation to push back higher,” says Mr Smith.
Trade Me shares soared 10c to $4.9, while Summerset rose 17c to $7.50.
Restaurant Brands rose 4c to $8.01. The company today announced a franchise agreement with Yum! Brands which will continue its Pizza Hut operations in New Zealand.
“It’s sort of a ringing endorsement of its ability to operate the quick service restaurant model in New Zealand,” says Mr Smith.
Vista jumped 9c to $3.70.
“Despite the disruptive age we live in, cinema is far from dead - in fact it’s flourishing,” says Mr Smith.
Spark went up 6c to $3.80 and Comvita climbed 15c to $5.75, while shares in Westpac fell 35c to $29.45.