NZX50 nudges up; junior miners surge on rallying metal prices

New Zealand’s S&P/NZX 50 index rose for a third session as it nudged higher in relatively light holiday trading as local investors continue to digest prime minister Christopher Luxon’s announcement of a free trade deal with India.

Meanwhile, the kiwi dollar joined the Aussie higher against the greenback after minutes to the Reserve Bank of Australia’s latest policy meeting showed members questioning whether the current setting is still restrictive.

Junior miners Minerals Exploration and Trans-Tasman Resources-parent Manuka Resources following the surge in gold and silver prices higher, while Santana Minerals was more subdued.

And beat-up retailer KMD Brands led the NZX50 higher on the day, with Tourism Holdings and Serko among gainers on the day, while Fletcher Building posted the steepest decline on the benchmark index.

Three in a row

The NZX50 increased 9.43 points, or 0.1%, to 13,517.73, with 25 stocks gaining, 21 declining and four unchanged. Turnover across the main board was $91.8 million, of which Auckland International Airport accounted for $13.5 million as it increased 0.4% to $8.26.

Among other travel and transport stocks, Tourism Holdings advanced 3.6% to $2.60 and Serko increased 2.7% to $3.09, while Air New Zealand was unchanged at 57.5 cents.

Companies were mixed in response to prime minister Christopher Luxon announcing a free trade deal with India, which is expected to get ratified next year.

Dairy companies were mixed as Fonterra Shareholders’ Fund units fell 2.2% to $8.07 while a2 Milk Co increased 0.4% to $10.66 and Synlait Milk climbed 5.7% to 65 cents, while horticulture exporters were muted as Scales Corp was unchanged at $5.93, T&G Global dropped 5.1% to $2.23 and Seeka dipped 0.2% to $4.59. Delegat was unchanged at $4.50 and Foley Wines was unchanged at 61 cents.

The kiwi dollar followed its Aussie compatriot higher against the greenback, trading at 58.14 US cents at 5pm in Auckland from 57.67 cents yesterday. The Reserve Bank of Australia’s minutes to its latest policy meeting showed members were unsure whether the current 3.6% setting was still tamping down the economy, and noted market pricing predicted a rate hike by the end of next year.

Mixed times

The S&P/ASX 200 index climbed 1.1% in late trading, while Japan’s Nikkei 225 dipped 0.1% as investors weighed comments by Japanese finance minister Satsuki Katayama that authorities have free rein to deal with excessive moves in the yen. The kiwi dollar traded at 90.77 yen from 90.74 yen yesterday.

KMD Brands led New Zealand’s NZX50 higher, climbing 3.7% to 28 cents, as the beat-up retailer alternates between both ends of the benchmark index. Briscoe Group dipped 0.6% to $5 and Hallenstein Glasson Holdings fell 1.3% to $9.77.

Fletcher Building poste the biggest decline on the benchmark, falling 3% to $3.60, while Contact Energy shed 2% to $9.31 and SkyCity Entertainment Group slipped 1.7% to 88.5 cents on a volume of 2.9 million shares, the most for the day.

Outside the benchmark index, junior miners soared as gold and silver prices hit new records overnight.

Minerals Exploration, which took a secondary listing on the NZX earlier this year when it was named Uvre, jumped 18% to 23 cents, while Manuka Resources climbed 7.3% to 8.8 cents. Jeweller Michael Hill International climbed 6.6% to 40.5 cents.

Meanwhile, would-be gold miner Santana Minerals was unchanged at $1.02.

Reporting by Paul McBeth. Image from Jingming Pan on Unsplash.