Property companies help boost NZ sharemarket

The S&P/NZX 50 Index closed up 0.66% or 82.44 points, rising to 12,577.15, with 36.5 million shares changing hands to the value of $156.4m.

The S&P/NZX 20 index closed at 7,419.19, up 0.71%, while the S&P/NZX 10 index closed at 1,900.50, up 0.50%.

There were 82 gainers and 51 decliners on the main board.

Salt Funds Management managing director Matt Goodson said that movements on the board reflected the market's flows rather than any particular factors.

Strong day for property

Property companies across the NZX50 had a strong day with share prices rising from Ryman Healthcare, Argosy Property, Goodman Property and Stride Property.

Ryman’s shares closed up 6.34% or 13c to $2.18, although it remains down nearly 35% over the last year.

Argosy saw its share price rise 2.86% to $1.08, up 3c, while Goodman Property shares closed 3.22% higher on $1.96, up 6c.

Stride saw its share price rise 1.82% to $1.12, up 2c, with 482,776 shares changing hands to the value of $541,855.38.

The strength in property stocks came as Stats NZ released its March quarter data on the value of building work.

Residential building work increased by 2.6%, while non-residential work decreased by 3.9%, resulting in a flat total building volume on a seasonally adjusted basis.

Ebos reclaims losses

Elsewhere, Goodson said Ebos Group had recouped most of the losses it incurred on Wednesday after its free float increased following a sell-down by a major shareholder.

On Thursday last week, longtime Ebos shareholder Sybos sold nearly 27m shares for $949m.

“The big index re-inclusions have now happened for it, so from here the stock is back into its recent trading range, really,” Goodson said.

“You’d have to say overall, given the size of the sell down, it’s gone very well.”

Shares in Ebos rose 3.18% to $37.96, up $1.17, with 299,564 shares changing hands, valued at $11,322,277.24.

Reporting season

As for the overall May reporting season, Goodson said that it was a mixed bag.

“I think the economy at the moment is possibly not having a strong cyclical rebound that we would certainly have hoped at this point.

“The economy’s still just a little bit mixed, and it’s despite a rural boom as well. We remain very hopeful that we’ll see a much stronger economy by year’s end as those rate cuts feed through and as the rural sector boom feeds through.”

The world

Wall Street stocks closed mixed on Wednesday, as signs emerged that US economic activity was cooling, although investors were cautious not to overreact to a slowdown in private sector hiring.

The Dow Jones Industrial Average slipped 0.2% to 42,427.74, while the broad-based S&P 500 Index was flat at 5,970.81.

The tech-heavy Nasdaq Composite Index added 0.3% to 19,460.49.

Jobs growth disappointing

Data from payroll firm ADP showed private sector employment growing by 37,000 jobs in May, sharply below the consensus forecast of 115,000 jobs, according to Briefing.com. But markets shrugged off the figures for now.

“Lower interest rates and the thought of the (Federal Reserve) responding sooner rather than later to signs of a weakening economy have acted as underpinning factors,” said analysts from Briefing.com in a note.

On Wednesday, the Fed also noted that “economic activity has declined slightly” in its latest “Beige Book” survey of economic conditions.

It flagged household and business caution due to heightened uncertainty surrounding US President Donald Trump’s policies and slower hiring as well.

– Additional reporting by AFP.