Resurgent growth in spending on credit and debit cards laid out the red carpet for some consumer-focused companies and retailers, as the S&P/NZX 50 index was one of the stronger markets across Asia, with KMD Brands leading it higher.
Port of Tauranga was among those pacing its gains as the consortium it’s part of edged closer to folding Northport co-owner Marsden Maritime Holdings under its wings.
Robust demand at the agricultural Fieldays showcase underpinned gains for several primary sector companies, such as Scales Corp, PGG Wrightson and the Fonterra Shareholders’ Fund.
Meanwhile, wealth manager Craigs Investment Partners softly played down reports across the Tasman that it’s looking at selling its half-share of stockbroker Wilsons Advisory, calling it pure speculation.
Three-peat
The NZX50 rose 43.17 points, or 0.3%, to 12,649.1, with 26 stocks gain, 19 declining and five unchanged, in its third straight gain. The local benchmark outperformed much of Asia, following a soft lead from Wall Street as investors greeted the US-China trade talks’ conclusion with tepid enthusiasm.
Turnover across the NZX’s mainboard was $123.1 million, with Spark New Zealand accounting for $16 million of that as it trading on a volume of 6.8 million, ending the day unchanged at $2.34.
The telecommunications provider has been the subject of speculation it might be facing a private equity suitor, and today had two large trades bookending the session – a single trade of 2 million shares at $2.34 to open the day, and another of 1.15 million at the same price in the match.
KMD Brands led the benchmark higher, climbing 4.9% to 32 cents, while pay-TV operator Sky Network Television gained 3.7% to $2.82 and Turners Automotive Group advanced 2.2% to $6.59, with Statistics New Zealand figures today showing the first monthly increase in spending on electronic cards of the year.
“Today’s results support our view of a gradual recovery in consumer spending, with more noticeable improvements expected in the second half of this year,” ASB Bank economists Yen Nguyen and Mark Smith said in a note. “Continued softness in card spending could see the OCR (official cash rate) move lower.”
That wasn’t universal, with casino operator SkyCity Entertainment Group falling 2.1% to 93 cents, Warehouse Group declining 1.2% to 85 cents and Hallenstein Glasson Holdings slipped 0.5% to $8.10.
White gold
Meanwhile, the Fieldays agricultural event at Mystery Creek near Hamilton continued to remind investors about the good health the primary sector has been enjoying, providing one of the highlights for the nation’s economy.
Scales Corp gained 3.5% to $4.79 and Fonterra Shareholders’ Fund increased 0.6% to $6.25 while outside the benchmark index, PGG Wrightson advanced 1.5% to $2.06 and Synlait Milk rose 2.9% to 70 cents.
Port of Tauranga advanced 2.1% $6.94 after its consortium with Northland Regional Council and Tupu Tonu received the final High Court orders for a scheme of arrangement to buy Marsden Maritime Holdings, whose shares were suspended at the close of trading.
Meanwhile, Napier Port slipped 0.6%, or 2 cents, after shedding rights to 6.5 cents of ordinary and special dividends.
Stock market operator NZX was unchanged at $1.54 with signs of life reemerging in the global initial public offering markets after the latest New York listing of space technology firm Voyage Technologies, and as property developer GemLife appears set to join the ASX, with its A$750 million offering said to be oversubscribed.
Gentrack posted the biggest decline on the NZX50, falling 2.5% to $11.80, while Ryman Healthcare declined 2.2% to $2.19.
Meanwhile, Craigs Investment Partners played down a report in the Australian Financial Review that it’s in talks to sell its 50% stake of Wilsons Advisory, calling it pure speculation and declining to comment on whether or not it was the case.
And Reserve Bank chair Neil Quigley apologised for the slow release of information relating to Adrian Orr’s sudden departure as governor after getting rebuked by finance minister Nicola Willis.
The kiwi dollar traded at 60.32 US cents at 5pm in Auckland from 60.35 cents yesterday.
Reporting by Paul McBeth. Image from Curious News.
