New Zealand shares continued their climb this week, approaching a record high reached in May, buoyed by a positive earnings season and fading fears of western military action in Syria.
New Zealand shares continued their climb this week, approaching a record high reached in May, buoyed by a positive earnings season and fading fears of western military action in Syria.
The NZX50 Index rose 9.445 points, or 0.2 percent, to 4,650.942. Within the index, 22 stocks rose, 16 fell and 12 were unchanged. Turnover was $137.4 million.
"The index has been stronger every single day this week," said Grant Williamson, a director at Hamilton Hindin Greene. "Overall, although they are not large rises on any particular day it has been steady buying as investors continue to gain confidence following the pretty successful reporting season that we have recently had."
Shares in Warehouse Group, the country's biggest listed retailer, reversed an earlier gain, closing down 1.3 percent to $3.71 after the company boosted annual profit on property sales and contributions from acquisitions. Adjusted net profit, which strips out abnormal movements, climbed 13 percent to $73.7 million, within its guidance of between $73 million and $76 million.
Even though the result was close to expectations, some investors may have taken profits after the stock's 26 percent gain this year, Williamson said.
Investor confidence is returning after the US and Russia began talks on plans for Syria to surrender its chemical weapons.
"The Syria issue at this stage seems to be sorting itself out," Williamson said.
Confidence in New Zealand may also have been buoyed by sporting success in the America's Cup yacht race, after Emirates Team New Zealand took its lead over Oracle Team USA to 6-1.
"It is always good for share markets when our sports teams start winning," Williamson said. "It gives everyone the 'feel good feeling' and that can rub off on investors."
"The confidence is still there and our index is continuing to improve," he said.
The index is approaching its record high of 4,680.110, touched on May 14.
"Expectations are that we will see the New Zealand index break through and make new highs possibly in the next few weeks," Williamson said.
Meanwhile, shares in Port of Tauranga, New Zealand's biggest export port, rebounded 1.3 percent to $14.38 as bargain hunters surfaced following the stock's 4 percent decline this week on news its marshalling unit lost a major log marshalling contract starting next year.
(BusinessDesk)
