Infratil paces NZX50 higher as Citi opens coverage; Nikkei surges on PM’s exit

Infrastructure investment firm Infratil was among the heavyweight stocks driving gains for the S&P/NZX 50 index as it kicked off a new week, with the firm getting a new set of analyst eyes and an upbeat opening rating.

Meanwhile, Japan’s Nikkei 225 index surged as investors welcomed the exit of prime minister Shigeru Ishiba after a series of electoral defeats left the ruling Liberal Democratic Party questioning his ability to get re-elected.

In local company news, Investore Property is branching out beyond big-box retailing as it buys the Silverdale Centre from its manager and cornerstone shareholder Stride Property Group.

And Channel Infrastructure posted the biggest decline on the benchmark index as it shed rights to its upcoming 6.25 cents per share interim dividend

A heavyweight day

The NZX50 gained 57.61 points, or 0.4%, to 13,281.14, with 21 stocks gaining, 23 falling and six unchanged. Turnover across the main board was $102.4 million.

Infratil paced the benchmark index higher, gaining 2.7% to $12.40 after Citi analysts started covering the infrastructure investment firm, with a ‘buy’ rating and setting a target price of $14.10.

That was among a raft of heavyweights buoying the local market, with Fisher & Paykel Healthcare gaining 0.8% to $38.18, Mercury NZ advancing 0.6% to $6.76, Meridian Energy rising 2.1% to $5.87 and Port of Tauranga increasing 2.4% to $7.59.

Stock markets across Asia were broadly stronger as Japan’s Nikkei 225 index surged 1.5% in late trading after prime minister Shigeru Ishiba announced his resignation over the weekend as the ruling Liberal Democratic Party pushed for someone more electable to lead. The kiwi climbed to 87.44 yen at 5pm in Auckland from 86.84 yen last week.

Australia’s S&P/ASX 200 index was among the laggards on the day, falling 0.4% in late trading as energy stocks and the major banks weighed on the index.

Peter McIntyre, an investment adviser at Craigs Investment Partners, said soft US jobs figures on Friday heightened expectations for the Federal Reserve to cut its key interest rate later this month, with inflation data this week having a high bar to derail things.

“CPI and jobless claims are going to be the key ones of all the announcements this week,” McIntyre said.

The kiwi dollar rose to 59.01 US cents at 5pm in Auckland from 58.59 cents last week.

Gentrack led the benchmark index higher, gaining 4.7% to $10.45, while Summerset Group Holdings increased 2.6% to $10.94 and Vulcan Steel advanced 2.4% to $8.09.

Good friends

Investore Property rose 0.4% to $1.155 after agreeing to buy a $114 million Silverdale Centre in Auckland from its manager, Stride Property Group, subject to approval from shareholders. The commercial landlord plans to expand its retail offering beyond the big-box stores that initially made up its $1 billion portfolio to include convenience-based retailers.

Stride Property was unchanged at $1.28.

Tourism Holdings increased 0.8% to $2.50 after the rental campervan operator said it’s exiting RV dealerships in Sydney and Brisbane to help revive margins for its Australian retail sales arm.

“That’s been a difficult market for them so they’re getting out,” Craigs’ McIntyre said.

Channel Infrastructure posted the biggest decline on the NZX50, falling 3.4%, or 8 cents, to $2.31 after shedding rights to its 6.25 cents per share dividend.

Retailers were generally weaker, with Hallenstein Glasson declining 2.1% to $8.91, KMD Brands falling 1.8% to 27 cents, and Briscoe Group slipping 0.7% to $5.62.

Ebos Group fell 0.6% to $30.65 after the healthcare products maker said it will join the ASX200 on Sept 22, while Eroad dropped 1.9% to $2.55 after saying it will join the S&P/ASX all technology index on the same day.

SkyCity Entertainment Group rose 0.7% to 70 cents after its exit from the S&P/ASX 300 index was confirmed.

Spark New Zealand was the most heavily traded stock with a volume of 2.5 million, as it gained 2% to $2.61.

Outside the benchmark index, high-tech exporters were among the stronger gainers, with Scott Technology up 4.1% at $2.04, ikeGPS rising 3.5% to 90 cents and Rakon advancing 3.5% to 90 cents.

Reporting by Paul McBeth. Image from Curious News.