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

 


MARKET CLOSE: NZ shares rise; Xero at record, Fletcher gains

MARKET CLOSE: NZ shares rise; Xero at record, Fletcher gains on Indian plans

Nov. 12 (BusinessDesk) - New Zealand shares rose, nudging the NZX 50 Index back toward the five-year high charted last month, as Australian interest drove Xero to a record and Fletcher Building gained after agreeing to buy a laminated panels business in India.

The NZX 50 rose 26.07 points, or 0.7 percent, to 3983.99. Within the index, 24 stocks rose, 13 fell and 13 were unchanged. Turnover was $78.7 million.

Xero, the cloud-based accounting services company that dual listed on the ASX last week, rose 8.6 percent to $6.30, giving it a market value of $622. That’s even before the fast-growth company, which listed on the NZX in June 2007, has turned a profit. It has gained 110 percent this year.

Listing on the ASX “opens up more buying in the stock – that’s what we’ve seen,” said Grant Williamson, a director at Hamilton Hindin Greene. “Investors are excited” by the company’s prospects though they should be “a little bit cautious at these sorts of levels.”

Fletcher Building, the biggest construction and building products company on the NZX 50, rose 3.3 percent to $7.48 after its local affiliate, Formica Laminates (India) Private, agreed to buy the laminates manufacturing business of listed Indian manufacturer Well Pack Papers & Containers in the Indian state of Gujurat for 365 million rupees ($8.2 million).

“It highlights the potential of the Indian market for that division of Fletcher,” Williamson said.

Contact Energy, the biggest power company on the NZX , fell 2.6 percent to $5.21 after its controlling shareholder, Australia’s Origin Energy, warned last week that regulatory and pricing decisions would cut underlying profit as much as 10 percent this year.

Among smaller stocks, Genesis Research and Development was halted from trading at 1.8 cents and told the ASX it may not have enough funds to keep operating without a loan or more support from shareholders.

Telecom, the biggest phone company on the NZX 50, rose 1 percent to $2.435, and Chorus, the networks company spun off from Telecom last year, rose 0.9 percent to $3.27. Chorus has gained 3.9 percent this year.

Australia & New Zealand banking Group fell 1.8 percent to $31.34 after shedding its 79 cents a share final dividend. Westpac Banking Corp, the other Australian bank that trades on the NZX, rose about 1 percent to $33.40.

Retailer Warehouse Group rose 0.3 percent to $3.19 and Fisher & Paykel Healthcare climbed 1.2 percent to $2.46.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news