NZ sharemarket closes up more than 1% as heavyweight stocks rally

On the main board, the S&P/NZX 50 Index closed up 1.18% or 150.82 points, rising to 12,905.41, with 32.2 million shares changing hands to the value of $124m.

The S&P/NZX 20 index closed at 7,566.10, up 1.33%, while the S&P/NZX 10 index ended the day at 12,613.46, rising 1.67%.

There were 88 gainers on the main board and 47 decliners.

F&P Healthcare looking strong

Devon Funds Management head of retail Greg Smith said that while there had been tariff turbulence, companies like Fisher and Paykel will likely remain unaffected.

“Even though [US President Donald] Trump sent a letter to Mexico, it won’t affect goods that are compliant with the USMCA [United States-Mexico-Canada Agreement]. So there’s still a feeling that Fisher and Paykel will be compliant and exempt,” Smith said.

“I suppose after the initial concern around those letters that were sent on the weekend, the market has gained some poise and become a bit more relaxed about the situation overall.”

Fisher and Paykel Healthcare rose 76c to $36.75 after 333,220 shares changed hands to the value of $12.1m.

Infratil also had a positive day, with its share price rising to $11.38, with $11.1m worth of shares changing hands.

MBIE update on AIA

Elsewhere, Auckland Airport stated that the Ministry for Business, Innovation and Employment (MBIE) had provided an update to those who submitted on its recent request for feedback on the effectiveness of economic regulation of airport services.

In its findings, MBIE advised that at this time, it is not considering legislative change.

“A bit of relief around the fact that regulatory oversight is now a non-issue, and it was now off the table.”

Auckland Airport subsequently saw its shares rally 4.36% to $7.78 with 1,363,985 shares changing hands to the value of $10.5m.

Meanwhile, a2 Milk’s share price also rallied, rising 4.81% to $8.28 after $4m worth of shares were traded.

“The Chinese infant milk market is shrinking, but the reality is a2 has been taking market share, and I suppose there’s some optimism that the result in mid-August will be a good one.”

Wall Street stocks finished higher on Wednesday, shrugging off a mid-session swoon after Trump denied plans to fire Federal Reserve chair Jerome Powell.

Trump's talk rattles in US

Major indices had moved suddenly negative after reports that a dismissal could be imminent. However, they recovered quickly once Trump ruled out firing Powell, at least for now.

The president, who has bitterly attacked the Fed chair for months, said such a move was “highly unlikely” and that “I’m not talking about that” when asked if he would fire Powell.

The tech-rich Nasdaq Composite Index advanced 0.3% to 20,730.49, a third straight closing record.

The Dow Jones Industrial Average gained 0.5% to 44,254.78, while the broad-based S&P 500 advanced 0.3% to 6,263.70.

“It’s very clear that the market wants to go higher,” Adam Sarhan of 50 Park Investments said, who described investor reaction to Trump’s mixed messaging on Powell as typical of a bullish tilt.

“Every time we get bad news thrown at it, the market shrugs it off and continues to rally, including today."

– Additional reporting AFP