The New Zealand benchmark share index rose 0.5 percent to end at a six-week high on Monday, boosted by a recovery in the shares of Telecom.
Energy stocks also closed on a positive note, while national carrier Air New Zealand avoided punishment despite a knockback by the High Court of its proposed alliance with Qantas.
The NZSX-50 Index closed up 12.69 points, or 0.5 percent, at 2,780.29 on turnover totalling NZ$84 million ($55 million).
Air NZ rose two cents to NZ$1.87, bouncing from a 17-month low of NZ$1.84 earlier in the session, after the NZ High Court ruled against a trans-Tasman alliance, vetoed last year by competition regulators in both countries.
"It's status quo - if they had been given approval, I think that would have been viewed very positively," said Richard Leggat of UBS.
"As it stands, the market didn't expect approval to happen so the decision hasn't affected the Air NZ share price."
Market leader Telecom rose five cents to NZ$5.86, continuing a bounce from its trough last week of NZ$5.60. Broking houses Goldman Sachs JBWere and J.P. Morgan have both upgraded their view on Telecom from neutral to outperform and overweight respectively, following the stock's decline from a three-year high after its annual result in August.
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