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Fletcher Building was one of the market winners. Photo/Michael Craig
Passive investment funds actively refreshed their portfolios and bought blue chip stocks, boosting the New Zealand stock market, which gained 0.5%.
The S&P/NZX 50 index rose sharply in the afternoon and
closed at 12,121.39, up 68.2 points or 0.57% after hitting an intraday low of 12,046.
There were 85 gains and 56 declines across the market on a light trading volume of 41.96 million in stocks worth $124.65 million.
Shane Solly, portfolio manager at Harbor Asset Management, said several big stocks had seen good days as investment funds made their allocations for the second quarter.
Mercury Energy was up 10c at $6.09; Meridian also rose 10c or 1.96% to $5.20; Fletcher Building increased by 9c to $6.30; Spark raised 10c or 2.15% to $4.75; Chorus improved 10.5c to $7.30; Auckland International Airport gained 12.5c to $7.79; and Ryman Health was up 15c at $9.20.
market leader Fisher and Paykel Healthcare was down 17c at $24.53; and a2 Milk fell 13c or 2.3% to $5.52 as an Australian broker changed its rating from buy to sell.
Air New Zealand, which raised $1.2 billion from investors, continued to capture market attention. The airline’s share price for ordinary shares rose 4.5c or 4.97% to 95c, and the rights soared to 75c, up 26c or 53.06% and well ahead of the price benchmark of 49c.
Solly said there had been some unusual prizes. “Maybe there is an opportunity for some people to trade the stocks and take advantage of the price differential. Tomorrow is an important day when we will have real rights trading.”
Air New Zealand’s share register for the two-for-one renewable rights offering is now closed and shareholders will know exactly how many rights they can redeem.
The NZX pointed out that each Air New Zealand right represents a right to subscribe for two new ordinary shares (at 53p per share) in the airline. A total of 1.122 billion rights were issued and, once exercised, will result in the issuance of 2.246 billion new shares.
Solly said shareholders need to remember they are paying and need to fund 53c times two ($1.06) for new Air New Zealand shares.
Meanwhile, Stride Property subsidiary Fabric is completing the purchase of the green star listed office building at 110 Carlton Gore Rd in Auckland for $213m – $4.5m below the original contract price .
Fabric is also selling four Class B office properties to Mansons CGR for a total of $84 million. Fabric’s portfolio valuation is $829 million, up $129 million, with green buildings accounting for 74%. strideThe share price rose 2c to $2.
Solly said the purchase of an innovative building constructed by Mansons will tidy up and enhance Stride’s portfolio and attract more investors.
Pushpay holdings rose 5c or 4.5% to $1.16; Arvida was up 4c or 2.38% at $1.72; Hallenstein-Glasson increased by 10c to $6.65; Milk Synmilk raised 11c or 3.26% to $3.48; and Fonterra Shareholders’ Fund gained 8c or 2.41% to $3.40.
Vista Group climbed 10c or 5.71% to $1.85; Harmony increased by 6c or 4.17% to $1.50; Green Cross Health gained 12c or 8.7% at $1.50; Heartland Group Holdings was up 4c at $2.29; and Rakon raised 5c or 3.05% to $1.69.
Moving logistics improved 7c or 5.69% at $1.30; The Colonial Motor Company was up 19c or 1.86% at $10.39; and Scott Technology gained 10 cents or 3.13% to $3.30.
Freight lanes decreased 11c to $12.31; DGL Group fell 13c or 3.49% to $3.60; Oceania Health was down 4c or 3.57% at $1.08; and Third age health services decreased 5c to $2.75; Bremworth fell 4c or 7.84% to 47c; CannaSouth was down 2.5c or 6.67% at 35c.
edge of the pacifica long-term growth stock, fell 4c or 3.88% to 99c after a New Zealand broker reduced the rating from a buy-to-hold.
TruScreen Group rose 0.009c or 12.86% to 7.9c after it announced to the market that a China-based cervical cancer screening trial had validated the superiority of its method. The Chinese Association of Obstetricians and Gynecologists examined 15,661 women over three years.
Mining service provider SMW Group withdraws from NZX after nearly two years. SMW’s revenue fell short of expectations due to delayed mining projects in Australia’s Bowen Basin. SMW was unable to reduce its debt and remaining listed was not commercially feasible. Its share price remained unchanged at 95c.
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