Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


MARKET CLOSE: NZ shares rise as AGMs throw up mixed messages

MARKET CLOSE: NZ shares rise as AGMs throw up mixed messages; Freightways gains

Oct. 28 (BusinessDesk) - New Zealand shares rose as more companies addressed their shareholders at annual meetings. Freightways rose to a four-month high after flagging higher profits at their annual meeting yesterday. Sanford fell after saying a high kiwi dollar and lower tuna catch dented earnings.

The NZX 50 rose 22.12, or 0.7 percent, to 3325.60. Within the index, 30 stocks rose, 12 fell and eight were unchanged. Turnover was $102.5 million.

The local benchmark gained as Europe’s deal to tackle debt sent a wave of relief across growth-sensitive securities such as stocks and the New Zealand dollar. Equity markets were broadly stronger across Asia at the 5pm close on the NZX.

Freightways rose 1.2 percent to $3.46, the highest since June 21. Profit rose 19 percent to a record in the first quarter, outpacing a 9 percent gain in sales, the company said at its AGM yesterday.

Freightways’ performance “gives a pretty good tick for New Zealand,” said Rob Mercer, an analyst at Forsyth Barr. A 9 percent rise in revenue from its core packaging business “bodes well.”

Mercer said stocks on the NZX 50 offer a dividend yield of about 7.5 percent, including property stocks yielding 9 percent, while government debt yields almost half that. As the economy picks up pace, shares would offer a capital gain as well as dividends,

Sanford fell 1.6 percent to $4.84. The fishing company said profit was $22 million to $23 million in the 12 months ended Sept. 30, down from $25 million a year earlier. Sales growth was all in the first half, it said.

Fletcher Building, the biggest construction company on the NZX, rose 1.5 percent to $6.71 after naming Tim Richards as chief executive of its building products division, promoting him from manager of the Stramit roll-formed steel business.

Nuplex Industries fell 1.1 percent to $2.63 after announcing the acquisition of a resin manufacturer in Germany which would help lift 2012 earnings by about 10 percent.

It lifted an Australian debt facility to A$300 million from A$200 million to cover the cost of buying Bayer MaterialScience’s Viverso business for 75 million euros, adding resins production in Germany.

EBITDA excluding Viverso and the recently-bought Masterbatch business, would be little changed from a year earlier.

NZ Oil & Gas held unchanged at 70 cents after two days of gains. Michael Hill International rose 2.4 percent to 85 cents.

Tower was the biggest gainer on the index, rising 8.7 percent to $1.37. Goodman Fielder rose 7.4 percent to 73 cents and Kathmandu gained 4.4 percent to $2.40.

Seeka Kiwifruit didn’t trade and was last at 85 cents. The country’s biggest kiwifruit grower forecast a fall in profit and a cut in asset values when they are assessed in December as the Pseudomona Syringae pv actinidiae bacteria ravages more kiwifruit orchards.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news