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NZ shares join global rally

NZ Newswire logoNZ Newswire 8/05/2017 Rebecca Howard

New Zealand shares pushed higher on Monday, led by Air New Zealand and Port of Tauranga, as the local bourse joined a global rally after Emmanuel Macron was elected president of France with a business-friendly vision of European integration. © Steve Parsons/Press Association New Zealand shares pushed higher on Monday, led by Air New Zealand and Port of Tauranga, as the local bourse joined a global rally after Emmanuel Macron was elected president of France with a business-friendly vision of European integration. New Zealand shares pushed higher on Monday, led by Air New Zealand and Port of Tauranga, as the local bourse joined a global rally after Emmanuel Macron was elected president of France with a business-friendly vision of European integration.

The S&P/NZX 50 index rose 61 points, or 0.8 per cent, to 7426.460. Within the index, 26 stocks rose, 13 fell and 11 were unchanged. Turnover was $116 million.

Across the Tasman, the S&P ASX 200 Index was up 0.5 per cent while Japan's Topix added 2.3 per cent.

"We had a market-friendly French election result this morning and we had strong jobs numbers in the US and so the political risk that's been weighing on a number of fronts might be receding a bit," said Greg Smith, head of research at Fat Prophets in Auckland.

He noted that despite stronger domestic inflation the central bank is unlikely to be lifting interest rates any time soon.

Economists are widely expecting it to keep rates on hold at a record low 1.75 per cent on Thursday.

Air New Zealand led the market higher, adding 2.6 per cent to $2.74. Fisher & Paykel Healthcare, which is benefiting from the recent slide in the New Zealand dollar, was up 2.4 per cent at $10.19.

Xero added 1.8 per cent to $21.38, as investors start to take positions ahead of its results that are due Thursday.

Dual-listed Westpac shed 0.1 per cent to $36.37. Westpac's New Zealand division contributed A$435 million to the group's first-half cash earnings of A$4.02 billion, up 3 per cent from a year earlier.

The market was weighed on by a 2.9 per cent fall in Tourism Holdings to $3.69 and a 2.9 per cent slide in ANZ Banking Group to $32.

Comvita continued to struggle after analysts cut their valuation on the stock late last week and jitters about the discovery of the myrtle rust fungal plant in the Far North. The stock shed 1.9 per cent to $6.33.

NZME shares rose 5 per cent to 84 cents.

Mr Smith said much of the market's attention has been focused on Fairfax Media after it confirmed to investors that a "non-binding indicative proposal" from US-based private equity firm TPG to buy its three most powerful Australian newspaper titles and the company's real estate website, Domain.

The proposal would leave Fairfax's New Zealand news assets in what The Australian newspaper described as "a sorry grab-bag of rump assets".

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