You are using an older browser version. Please use a supported version for the best MSN experience.

NZ shares rise as Tegel, A2 Milk bounce

NZ Newswire logoNZ Newswire 16/12/2016 Sophie Boot
Within the index, 27 stocks rose, 19 fell and five were unchanged. © Shutterstock Within the index, 27 stocks rose, 19 fell and five were unchanged.

New Zealand shares rose, snapping five days of decline, with Tegel Group Holdings and A2 Milk Co recovering from being sold off earlier in the week, while Vista Group International and Infratil fell.

The S&P/NZX50 Index gained 11.63 points, or 0.2 per cent, to 6,760.25. Within the index, 27 stocks rose, 19 fell and five were unchanged. Turnover was solid at $239.8 million.

"After a pretty miserable week we've had a nice rebound to finish off. There were firmer markets offshore but I also think we're starting to see a little bit of bargain hunting in our own market," said Grant Williamson, director at Hamilton Hindin Greene.

"Following a pretty miserable day for Tegel yesterday, they've come in for a little bit of bargain hunting."

Tegel rose 2.3 per cent to $1.32. It sank 17 per cent to a record low $1.29 yesterday after posting a 4 per cent decline in first-half earnings as margins were squeezed by a glut of chicken keeping domestic prices low.

A2 Milk led the index higher, gaining 3.4 per cent to $2.15. It began declining on Monday on the news that Australian formula producer Bellamy's had gone into a trading halt on the ASX, and had dropped 14 per cent before Friday's bounce.

"There's still a bit of caution as we wait for the news from Bellamy's over in Australia. Investors will be cautious about what that means for that stock and obviously how it affects the sector," Williamson said.

Vista was down 3.5 per cent to $5.50. Infratil dropped 2.8 per cent to $2.60 and Property for Industry declined 2.6 per cent to $1.51.

Sky TV dropped 0.5 per cent to $4.08. It's shed 17 per cent since Wednesday, when it cut its 2017 earnings guidance, citing rising content costs and falling revenue and subscribers.

Vector fell 0.3 per cent to $3.13. Auckland's electricity network owner made strong criticisms of the Electricity Authority's latest proposals to shift the cost of the national grid to those areas benefitting most from investment in upgrades, saying the revamped proposals released this week change nothing of substance while introducing "huge risk" to the process.

Outside the benchmark index, AFT Pharmaceuticals fell 1.1 per cent to $2.75 and Hellaby Holdings was unchanged at $3.46.

image beaconimage beaconimage beacon