MARKET WRAP: NZ shares rise to new high during "post-result season"
The record finish was despite a number of stocks shedding their dividends
New Zealand’s benchmark Top 50 Index hit a fresh record as investors continue to chase the relatively high yields available from shares.
The index rose more than 86 points, or nearly 1%, to 8,900 on turnover of $214.4 million.
“We’re looking at 18.5%-type returns on the NZX 50 for the last 12 months versus a deposit in the bank of around about 3%. That’s a substantial return,” says Nigel Scott, a senior investment adviser at Craigs Investment Partners.
“I still think people are chasing the yield stories – post-results season, we’ve seen stocks like Fisher & Paykel (Healthcare) gain $1 and clearly it’s helped sentiment across the board,” Mr Scott says.
Fisher & Paykel shares gained 2c to $14.42 today and have risen from $13.35 since May 25, the last trading day before it reported a record result, an increase of 12% to $190.2m for the year ended March.
The re-weightings of key MSCI indicies that took effect from June 1 are also still affecting trading.
A2 Milk entered the main MSCI index for New Zealand and its shares gained 48c, or 4.4%, to $11.38 today, although they’re still well shy of the record $14.62 reached in February.
Synlait Milk was another beneficiary, entering the small companies index, and its shares fell 13c to 10.77. Its shares hit a record $11.60 on May 31, the day before the index changes.
The market’s record finish was despite a number of stocks shedding their dividends – Ryman shed its 11c per share payout and yet its shares rose 21.9c to $12.05, Kathmandu shed its 4c dividend and its shares eased only 1c to $2.33 while Sanford shed its 9c dividend and its shares rose 6c to $7.72.
Mr Scott says all the retirement stocks have been enjoying a strong run. For example, Summerset Group gained 10c to a record $7.48 today.
Staff reporter
Wed, 11 Jul 2018
Wed, 11 Jul 2018
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MARKET WRAP: NZ shares rise to new high during "post-result season"
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