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

 


MARKET CLOSE: NZ shares rise as dividend yields appeal

MARKET CLOSE: NZ shares rise as dividend yields keeps market bid

Nov. 9 (BusinessDesk) – New Zealand shares rose. Telecom rose as the nation’s relatively high dividend yields drew investors while Infratil fell after taking a charge against its UK airport investments.

The NZX 50 fell 2.66 points, or 0.1 percent, to 3957.91. Within the index, 22 stocks rose, 16 fell and 12 were unchanged. Turnover was a lower-than-average $70.6 million.

“Savers are being penalized,” said David Price, a broker at Forsyth Barr. “People are being forced off the sidelines and into high risk investments than normally. It’s a global phenomenon. New Zealand is one of the high yielding markets.”

Telecom rose 1.3 percent to $2.41. At today’s price it has a dividend yield of 12.5 percent while a one-year term deposit offers about 4.27 percent.

Fisher & Paykel Appliances, which gets more than 50 percent of sales in US dollars, rose 1.3 percent to $2.43 as the kiwi dollar held near a two-week low at 81.60 US cents.

Infratil fell 0.5 percent to $2.18. The company took a $43.9 million charge to write down the carrying value of the Glasgow Prestwick and Kent airports, which will be reflected in the first-half net profit, the company said in a statement. The investment firm is trying to sell the unprofitable airports, and has already written down their value by $60.4 million in the past two financial years.

“There’s been a for-sale sign there for quite some time,” Price said.

Fletcher Building, the biggest construction and building materials group on the NZX 50, fell 1.4 percent to $7.24 even after Real Estate Institute figures showed home sales rose last month while the national median house price rose to a record.

Air New Zealand, the government controlled airline slated for a partial selldown, rose 0.8 percent to $1.24 with 9.6 million shares changing hands, the biggest daily volume since July 2008.

AMP, the Australian wealth manager, rose 3.2 percent to $5.89 and Auckland International Airport fell 0.8 percent to $2.655. OceanaGold, operator of the Macraes gold field, rose 2.8 percent to $4.42.

TrustPower, the utility controlled by Infratil, rose 1.6 percent to $8.53. PGG Wrightson, the rural services company, fell 2.9 percent to 33 cents.

Among smaller stocks, Windflow Technology dropped 21 percent to 15 cents while AWF Group climbed 1.6 percent to $2.50.

Contact Energy fell 0.2 percent to $5.35 and Cavalier, the carpet maker, declined 1.1 percent to $1.85.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Brewing: Lion To Buy Cult Upper Hutt Brewer Panhead

Lion - Beer, Spirits and Wine (NZ), New Zealand's biggest beer maker, has agreed to buy Panhead Custom Ales from the family of founder Mike Neilson, its second such purchase of a popular craft brewer after the acquisition of Dunedin-based Emerson's Brewing Co in 2012. More>>

ALSO:

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news