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

 

Court Ruling: Kiwifruit NZ Ordered To Consider Collaborative Marketing Proposals

The High Court has told kiwifruit marketer Zespri to reconsider collaborative marketing proposals from Splice Fruit and Seeka Kiwifruit to sell fruit offshore that its board had previously rejected. More>>

ALSO:

Electric Vehicles: No Road User Charges Feature In Govt Package

Drivers of electric vehicles won't have to pay road user charges and will be allowed to drive in bus lanes as part of a new government plan to double EV numbers annually to a target 64,000 by 2021. More>>

ALSO:

Pre-Budget: Computer Emergency Response Team, Assemble!

John Key told the country's first ever Cyber Security Summit in Auckland that the government had earmarked funding set up a national Computer Emergency Response Team to help prevent and act on cyber incidents in partnership with the private sector and other organisations. More>>

ALSO:

Job Cutter Goes: Mark Weldon To Step Down As MediaWorks CEO

“When I joined MediaWorks in August 2014, I had a mandate to lead a significant change programme to bring the business back from receivership into a position where it could once again be a strong competitor in the market, with a sound and sustainable future. It was a big brief, laden with inherent challenges, but I took it in good faith and have dedicated myself fully to the goal since." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news