NZ Sharemarket Sees Gains with Gentailers Leading the Way

The NZ sharemarket rose 1.11% or 138.04 points to 12,605.07, driven by gentailers such as Contact Energy and Manawa Energy following the latter's acquisition by the former. The S&P/NZX20 index rose 1.16%, while the S&P/NZX10 index also saw gains. There were 97 gainers on the main board and 41 decliners, with 41,673,190 shares changing hands valued at $151 million.

The New Zealand sharemarket experienced a robust performance today, with the NZSE index rising 1.11% or 138.04 points to 12,605.07. The S&P/NZX20 index also gained 1.16%, while the S&P/NZX10 index saw notable gains. The trading session was marked by 97 gainers and 41 decliners, with a total of 41,673,190 shares changing hands valued at $151 million [1].

The positive performance was largely driven by the energy sector, with Contact Energy and Manawa Energy leading the way. Contact Energy, which recently received Commerce Commission clearance to acquire Manawa Energy, saw its market share increase from 21% to 25%, making it the second-largest generator in New Zealand [2]. The acquisition, valued at $2.3 billion including Manawa's debt, will enhance Contact's ability to supply electricity and offer shaped hedges, potentially benefiting consumers [2].

The acquisition was well-received by the market, with investors optimistic about the potential for further policy easing by the Reserve Bank in response to upcoming unemployment data. The strong performance of transportation stocks, such as Mainfreight and Auckland International Airport, also contributed to the overall market sentiment [2].

Other notable gainers included Mercury NZ (+1.7%), Fletcher Building (+3.2%), Summerset Group (+3%), and Ryman Healthcare (+3.4%) [2]. These gains were driven by easing concerns over global supply chain disruptions and optimism around US-China trade relations [2].

In contrast, the NZD/USD exchange rate remained relatively stable, with the currency trading at 1.1300. The Reserve Bank of New Zealand (RBNZ) is expected to maintain its current policy stance, with no immediate changes to interest rates or monetary policy [3].

Overall, the NZ sharemarket's performance today reflects a positive outlook on the energy sector, driven by the Contact Energy-Manawa Energy acquisition and broader economic optimism. Investors should continue to monitor the market for any further developments and adjust their portfolios accordingly.

References:
[1] https://finance.yahoo.com/quote/%5ENZ50/
[2] https://www.tradingview.com/news/te_news:457454:0-nzx-50-ends-higher-near-2-month-peak/
[3] https://www.nzherald.co.nz/business/power-play-contact-energy-given-clearance-to-acquire-manawa-energy/MQVFM7FFKJAV7O2VUYQVTFVXK4/