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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news