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Shares recoup losses after US election

NZ NewswireNZ Newswire 10/11/2016 Sophie Boot

The new NZME building in Graham St. © Fiona Goodall/Getty Images The new NZME building in Graham St. New Zealand shares regained some of Wednesday's losses, led upwards by A2 Milk Co, Heartland Bank, and Fletcher Building, while Auckland International Airport declined.

The S&P/NZX 50 Index rose 1 per cent, to 69.51 points, to 6,733.72. Within the index, 27 stocks rose, 20 fell and four were unchanged. Turnover was $191 million.

The local benchmark index dropped 3.3 per cent on Wednesday, turning to a loss around 3pm as it became increasingly apparent the US public had voted for Donald Trump as their new president.

On Thursday morning, it bounced by as much as 3.4 per cent after positive leads from Wall St and European markets but has pared those gains as the day wore on, lagging behind Asian markets in the afternoon.

At 5:05pm, Japan's Nikkei 225 was up 5.9 per cent, Hong Kong's Hang Seng had gained 1.9 per cent, and Australia's S&P/ASX 200 rose 2.8 per cent.

"Our friends across the Tasman are trading significantly higher, it's a strong day for resources which is driving their market, and we're crimped a bit because of the interest rate sensitive stocks we have," said Peter McIntyre, investment adviser at Craigs Investment Partners.

"When longer-term bond yields rise, we're seeing a sell-off in our more interest rate sensitive stocks, and Auckland Airport is a good example of that - it's a quality asset, but it's weaker," McIntyre said. Auckland International Airport was the third-worst performer on the index, down 2.6 per cent to $6.32.

New Zealand's two-year swap rate rose five basis points to 2.2 per cent and the ten-year swaps gained 25 basis points to 3.0875 per cent.

A2 Milk Co led the index, up 9.2 per cent to $2.14. Yesterday it dropped 4.9 per cent to $1.96. On Tuesday, the milk marketer said its first quarter sales of $112.5 million met expectations with sales driven by growth in infant formula and milk.

Heartland Bank rose 6.3 per cent to $1.51, while ANZ Group gained 5.9 per cent to $28.95 and Fletcher Building advanced 5.5 per cent to $10.02.

Meridian Energy was the worst performer, down 3.4 per cent to $3.455, while Precinct Properties dropped 2.8 per cent to $1.20.

Vital Healthcare Property Trust shed 2 per cent to $2.01, Goodman Property Trust dropped 0.8 per cent to $1.21 and Z Energy fell 0.1 per cent to $7.40.

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