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


MARKET CLOSE: NZX 50 climbs above 4000; Fletcher gains

MARKET CLOSE: NZX 50 climbs above 4000; Fletcher, Chorus, Hallenstein gain

Nov. 23 (BusinessDesk) - New Zealand shares rose, pushing the NZX 50 Index above 4000 for only the second time since January 2008. Fletcher Building, Chorus, Hallenstein Glasson Holdings and Property for Industry led the advance while Precinct Properties fell.

The NZX 50 rose 11.12 points, or 0.3 percent, to 4008.33, bringing its gain this year to 21 percent. Within the index, 20 stocks rose, 19 fell and 11 were unchanged. Turnover was $97 million.

New Zealand’s benchmark index has gained twice as much as the Standard & Poor’s 500 Index so far this year helped by a global hunger for yield as interest rates stay low. The NZX 50 has a cash yield of about 5.5 percent and analysts are forecasting earnings per share growth of between 3 percent and 5 percent. By contrast a one-year term deposit offers about 4.28 percent.

“It reflects the appetite around the world for income,” said Rickey Ward, equities manager at Tyndall Investment Management. “New Zealand has high income generating capital markets.” After its recent gains, the local market is now “fair value,” he said.

Fletcher, the biggest company on the exchange, rose 1.9 percent to $7.99, having earlier gained above $8. The shares have advanced since the company told shareholders at the annual meeting this week that operating earnings will grow by as much as 22 percent in 2013 financial year as new home construction accelerates.

“They must be feeling reasonably comfortable” about the outlook to give that guidance, Ward said.

Property for Industry, which invests in industrial properties, rose 2.5 percent to $1.25. Yesterday, the company said it has entered into unconditional contracts to acquire three industrial properties with a total purchase price of $37.8 million at an average purchase yield of 8.7 percent.

Hallenstein, the clothing chain, gained 2.1 percent to $5.36, leading gains among retailers. Pumpkin Patch, the children’s clothing chain, rose 1.7 percent to $5.36.

Warehouse Group, the biggest retailer on the bourse, rose 1.3 percent to $3.19 after reiterating its forecast for this year’s earnings to beat those in 2012 amid signs of growth in consumer spending.

Chorus, the network company spun off from Telecom last year, rose 1.5 percent to $3.30.

Among the tech stocks, Xero extended its gains, rising 1.4 percent to $6.44, while Diligent Board Member Services ran out of puff, falling 0.8 percent to $4.70.The two stocks have soared 130 percent and 138 percent respectively this year.

Precinct Properties dropped 2.5 percent to 99 cents after the company formerly known as AMP NZ Office said its newly acquired Bowen Campus site near Wellington’s Beehive and Parliament has missed on a contract to supply as much as 60,000 square metres of office space for government departments.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news