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

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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