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Local shares rally, led by NZ Refining

NZ Newswire logoNZ Newswire 16/11/2016 Sophie Boot
© Reuters

New Zealand shares rallied, led by New Zealand Refining Co, Summerset Group Holdings and Trustpower, while Auckland Airport dropped.

The S&P/NZX 50 Index rose 54.14 points, or 0.8 per cent, to 6,824.57. Within the index, 38 stocks gained, eight fell and five were unchanged. Turnover was $172.8 million.

"It looks like the reflation story has gone away for the day, Asian markets are strong right across the board," said Peter McIntyre, investment adviser at Craigs Investment Partners.

"We've seen bond yields in the US pull back a bit, and some of that reflation story we've been seeing prior to Trump getting in has unwound."

At 17:15 local time, Japan's Nikkei 225 had gained 1.1 per cent, Hong Kong's Hang Seng was up 0.6 per cent, and Australia's S&P/ASX 200 had gained 0.2 per cent.

New Zealand Refining Co led the index, up 4.8 per cent to $2.60.

"It's had a recovery of late, probably as a value play - I know a number of brokers have price targets significantly higher to where it's trading at the moment," McIntyre said.

Summerset Group Holdings gained 4.3 per cent to $4.88, which McIntyre said was down to investors seeing good value in the stock below $5 after a volatile six weeks. Trustpower gained 3.8 per cent to $4.67 and Freightways rose 3.1 per cent to $6.70.

Genesis Energy advanced 3.2 per cent to $1.95, while outside the benchmark index New Zealand Oil and Gas jumped 23 per cent to 61.5 cents.

Genesis will buy NZOG's stake in the Kupe gas and oil field for $168m , which the country's biggest electricity retailer expects will immediately boost annual earnings. If the deal goes ahead, $100m will be returned to NZOG investors in 2017.

Tower rose 0.7 per cent to 77 cents, having dropped 10 per cent this week following Monday morning's earthquake. On Tuesday it told the market the quake could trim its profit by a maximum $7.2m due to its reinsurance programme.

Auckland International Airport was the worst performer, down 1.5 per cent to $6.01, while Spark dropped 0.8 per cent to $3.325.

Investore Property was unchanged at $1.40.

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