NZX closes higher following continued gains in the energy sector

18:35, Oct 07 2020

Meridian Energy led blue chip stocks higher as the New Zealand stock market closed up 0.34 per cent on Wednesday.

The NZX 50 index ended up 41.132 points, at 12,016.

Energy stocks Meridian, Trustpower and Genesis made gains on the market. Meridian closed up 2.98 per cent at $5.19, Trustpower was up 0.41 per cent at $7.30 while Genesis closed up 1.66 per cent at $3.

Hamilton Hindin Greene investment adviser Jeremy Sullivan said greater certainty around the future of the Tiwai smelter and expectations for lower interest rates had helped the electricity sector.

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Overnight Wall St dropped after United States President Donald Trump ordered a stop to negotiations with Democrats on a Covid-19 economic stimulus bill until after the election, Sullivan said.

The market was expecting stimulus because of Trump’s tweets but he later said he had stopped negotiating with Democrats and accused Speaker Nancy Pelosi of not negotiating in good faith.

The NZX50 index ended Wednesday up or 41.132 points, at 12,016.
Ricky Wilson/Stuff
The NZX50 index ended Wednesday up or 41.132 points, at 12,016.

In a series of tweets, Trump said: “I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major stimulus bill that focuses on hardworking Americans and small business.” He also accused Speaker Nancy Pelosi of not negotiating in good faith.

The S&P 500 index slid 1.4 per cent after having been up 0.7 per cent prior to the president’s announcement.

Some top 10 NZX stocks closed the day in the red.

Fisher & Paykel Healthcare closed down 1.81 per cent at $33.16, Air New Zealand closed down 1.6 per cent at $1.53, and a similar trend was seen for retirement stocks Ryman, closing down 0.34 per cent at $14.75 and Summerset, down 0.77 per cent at $9.

But telecommunications infrastructure company stocks rose, with Chorus up 1.49 per cent to $8.85, and Spark also closing up 0.22 per cent to $4.62.

A2 Milk ended the day up 0.39 per cent at $15.540.

Stuff