MARKET WRAP: NZX50 reaches record 9000 mark

The benchmark index climbed 111.12 points to a record high of 9053.59 on turnover of $136 million. Orion Health soars on $255m business unit sale.
Hamilton Hindin Greene investment adviser Grant Davies talks through the day on the markets.

New Zealand shares rose today to reach a record close of more than 9000 points on the NZX50.

The NZX50 index climbed 111.12 points to 9,053.59, on turnover of $136 million.

“We’ve touched over 9000 [points] a few times but we’ve never managed to close that, so that’s a tick in the right box,” says Hamilton Hindin Greene investment adviser Grant Davies.

A2 Milk climbed 37c to $11.80, while its supplier Synlait Milk jumped 16c to $11.55. 

Orion Health was the best performer, today rising 29c to $11.14 on news of an asset sale plan

The company today said it will sell a majority stake in its core Rhapsody business and a quarter stake in its Population Health division to UK private equity firm HgCapital

“Long-suffering investors will be pleased they’ve come to an agreement to at least ride the ship for a bit,” says Mr Davies.

“You could argue that it’s selling the golden goose, but it’ll keep a stake in the Rhapsody programme and get themselves a bit of cash to stay in the game for the time being.”

Ebos rose $1.25 to $20.50. 

Yesterday the medical product provider inked a $A1 billion five-year supply deal with Australia’s Chemist Warehouse Group, which will take its annual sales to more than $NZ8.5b from July 1 next year.

“[The announcement] has seen increases in the target price across the board from all the analysts who cover the stock,” says Mr Davies.

Spark, which yesterday said 96% of staff offered new "agile" contracts had signed them, rose13c to $3.84, while Trade Me was up 8c to $4.63.

Fonterra Shareholders' Fund sank 6c to $5.24.

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