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NZ shares bounce as Asian markets rise

NZ NewswireNZ Newswire 27/06/2016 Sophie Boot
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New Zealand shares bounced on Monday as Asian markets traded strongly in the afternoon, with companies offering stable dividends attracting interest from investors wary about potential cuts to the official cash rate. Auckland International Airport, Chorus and Genesis Energy gained.

The S&P/NZX 50 Index rose 19.14 points, or 0.3 per cent, to 6,686.92. Within the index, 22 stocks rose, 21 fell and seven were unchanged. Turnover was $126.7 million.

The local bourse dropped 2.3 per cent on Friday as news of the United Kingdom's vote to leave the European Union trickled in throughout the day. It was down 1.2 per cent in early trading on Monday but has bounced back since midday.

Markets across Asia traded higher this afternoon, with Australia's S&P/ASX 200 up 0.5 per cent, Japan's Nikkei 225 gaining 2.3 per cent and China's CSI 300 rising 1.2 per cent.

"We're the first market open and we had a bit of a catch-up because markets around the world performed worse than we did on Friday," said Rickey Ward, New Zealand equity manager at JB Were.

"The Asian markets were sold pretty heavily from midday Friday. Since Asian markets have opened up today, they have performed a bit better and therefore the trend has been very much led by them - the Australian market turned more positive, and we did too."

Steel & Tube Holdings rose 2.8 per cent to $1.87 and Auckland International Airport gained 1.8 per cent to $6.26.

Chorus rose 1.8 per cent to $4.07, Genesis Energy gained 1.5 per cent to $2.04 and Fletcher Building 1.2 per cent to $8.19.

NZME, which listed on the NZX All Index, dropped 20 per cent to 80 cents. The New Zealand print media and radio assets spun off from APN News & Media didn't trade in the first hour after listing at midday as investors questioned the valuation. As at 12:58pm, NZME stock was bid at 85 cents while holders were asking 98 cents a share, down from $1.05 they started the session at. The stock listed at $1.

Tegel gained 4.4 per cent to $1.65, making it the best performer on the index. Xero rose 3.1 per cent to $17.52, and A2 Milk gained 2.4 per cent to $1.73.

Air New Zealand was the worst performer, down 2.6 per cent to $2.05, Orion Health fell 2.6 per cent to $4.59 and Tower dropped 2.3 per cent to $1.30.

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