The New Zealand sharemarket has firmed as investors re-evaluated tech stocks after the recent a sell-off in the sector worldwide.
The NZX 50 Index rose 12.746 points, or about 0.3 per cent, to 5076.285 on Tuesday.
Within the index, 26 stocks rose, 14 fell and 10 were unchanged. Turnover was $110.8 million.
The tech-heavy Nasdaq Composite Index rallied overnight after heavy selling last week pushed it to its lowest level since February, leading some to call the selling a “tech wreck”.
Over the past month tech and biotech stocks have been sold as investors questioned their ability to deliver the profits implied in their high valuations.
Pacific Edge snapped a seven-day decline, climbing 5.9 per cent to $1.07. The Dunedin-based biotech company has plunged 34 per cent in the past month and 39 per cent from a record-high $1.76 in February.
But Xero, the cloud-based accounting software, closed lower for a third day – down 2.9 per cent to a six-month low $28.45.
“The most interest in the market has been on the tech rank, and we’ve seen a fairly mixed performance where the likes of Pacific Edge has bounced up somewhat, following its steep sell-off and Xero bounced initially but has really given it up,” said Matthew Goodson, of Salt Funds Management.
“What investors are having to do is make big bold assumptions about what current trading performance implies for the future.”
Diligent Board Member Services, the governance app developer, declined 1.7 per cent to $4.05.
Outdoor goods retailer, Kathmandu Holdings, paced gains, up 5.7 per cent to $3.89.
Energy stocks rose before Genesis Energy, the last company in the government’s partial privatisation programme, begins trading on the NZX on Thursday.
Contact Energy advanced 2.6 per cent to $5.47, Mighty River Power rose 0.7 per cent to $2.16 and Meridian Energy climbed 0.9 per cent to $1.16.
Telecom, New Zealand’s largest telecommunications provider, climbed one per cent to an 11-month high of $2.665 after saying it had trimmed the size of its banking facilities and extended its maturity.