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

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news