MARKET CLOSE: NZ shares rises as positive offshore leads spur buying
By Rebecca Howard
Jan. 11 (BusinessDesk) - New Zealand shares rose as investors were cheered when US Federal Reserve Chairman Jerome
Powell reiterated the US central bank can be patient on raising interest rates further.
The S/NZX 50 index rose 40.42 points, or 0.5 percent, to 8,959.58. Within the index, 31 stocks rose, seven were unchanged and
12 fell. Turnover was $61.1 million.
Powell told the Economic Club of Washington DC the Fed can "watch patiently and carefully." His comments, coupled with
other similar comments from Fed officials recently, has meant the market has pared back its expectations regarding Fed
rate hikes for this year, increasing the attractiveness of equity markets. Investors, however, are still jittery about
the US-China trade tensions. US and Chinese officials are now working on arrangements for higher-level trade talks after
mid-level officials met this week.
Leads from US markets were reasonably strong "and we have flowed on from there," said Grant Davies, an investment
advisor at Hamilton Hindin Greene in Christchurch. The Dow Jones Industrial Average added 0.5 percent in overnight
With few domestic drivers, investor sentiment is largely being driven by events offshore. Volumes remained very tepid
and "we are still in that holding pattern coming up to the earnings season in February," he said.
Synlait Milk added 0.8 percent to $9.27 after it said registration of its Dunsandel plant in the South Island has been
renewed by Chinese authorities for another four years.
A2 Milk added eased 0.1 percent to $11.35.
The most heavily traded stock was Kiwi Property Group, which added 0.4 percent to $1.385 while Spark New Zealand was the
second, adding 0.1 percent to $4.165, although volumes were well below the average of the past 90 days. Z Energy also
saw fairly heavy trading, with around 621,155 shares trading hands, below the daily average of 1 million in the past
three months. It gained 2.2 percent at $5.61.
Sky Network Television, up 4.8 percent at $1.98, was the biggest mover on the day, followed by SkyCity, which added 2.6
percent to $3.62.
In the other direction, the Fonterra Shareholders' Fund fell the most, losing 2.1 percent to $4.70 on some
bargain-hunting after it gained in recent sessions. Air New Zealand shed 1.1 percent to $3.16 while Auckland
International Airport was down 0.8 percent at $7.22.
Fletcher Building fell 0.6 percent to $4.94. According to Stats NZ, New Zealand councils consented almost 32,800 new
dwellings in the year through November, 5.3 percent more than a year earlier.
Ahead of the February earnings season, Davies said investors are now watching for any Christmas updates from retailers,
in particular after Kathmandu's disappointing Christmas result. Kathmandu, which has fallen 17.6 percent this year,
ended down 0.4 percent at $2.25