17 Mar 2014

Share market stages turnaround

6:06 pm on 17 March 2014

The share market has staged a big turnaround, with the NZX Top 50 Index swinging from being down as much as 21 points to closing up 9 points at 5088.

Forsyth Barr advisor Dave Schaper said the turnaround was remarkable in the face of global fears about Ukraine and worries about the Chinese economy slowing.

"We've had some good movements in a lot of the bluechip companies. Fletcher Building with a good day, there's been a lot of buying activity on Telecom, Auckland airport moving on from strength to strength," Mr Schaper said.

"Really, you go and look and say 'well, not too many worries from offshore for them'."

Fletcher Building gained 2 cents to $9.60, Telecom rose 3 cents to $2.48, Auckland International Airport climbed 2 cents to $3.92.

Ryman Healthcare rose 7 cents to $8.45 after it announced plans for eight new retirement villages in New Zealand, five of which will be built in Auckland.

Dollar weaker

The New Zealand dollar was slightly weaker against the currencies of all the country's major trading partners.

Bancorp Treasury Services senior client advisor Peter Cavanaugh said global developments were impacting on the currency.

"First of all, we've had the sugar rush from Thursday's monetary policy statement, and that's worn of," Mr Cavanaugh said.

"Just as that's happening, we've got developments in Crimea, which shows that the situation in Ukraine and Crimea is not going away.

"More relevant to our part of the world is concerns about what's happening in China - economic growth is slowing and there's rumours of a default on the domestic bond market, so the Chinese government appear to be allowing a free market to develop on their bond market."

That would be good in the long term but, in the short term, it had increased people's risk awareness and risk aversion, and that risk sensitivity had translated to a weaker New Zealand dollar, he said.

Just after 5pm, the New Zealand dollar was trading at 85.3 US cents, 94.44 Australian cents, 51.27 pence, 0.6135 euro and 86.63 yen.