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

 


MARKET CLOSE: NZ shares at new 5-yr high; Sky TV, Tower gain

MARKET CLOSE: NZ shares edge up to new 5-year high; Sky TV, Tower gain

Nov. 29 (BusinessDesk) - New Zealand shares edged up to a new five-year high as Sky Network Television surprised investors with a special dividend and Tower said it would return capital to shareholders after the sale of its medical insurance business.

The NZX 50 Index rose 4.61 points, or 0.1 percent, to 4016.77, the highest since the start of January 2008. Within the index, 25 stocks rose, 18 fell and seven were unchanged. Turnover was $142 million, with big crossings of Telecom and Sky TV.

Sky TV, the nation’s main pay-TV company, rose about 3 percent to $5.22. The Auckland-based company will pay a special dividend of 32 cents per share with a record date on Dec. 13 to distribute tax credits. Last year Sky TV paid a special dividend of 25 cents per share.

Sky TV’s special dividend “came out of the blue somewhat and shareholders will welcome the decision,” said Grant Williamson, a director at brokerage Hamilton Hindin Greene.

He said given the market's strong gains recently, a number of shares are now "pretty fair value" and will need to show more earnings growth before they're rerated further.

Tower, the insurer that’s 34 percent owned by Guinness Peat Group, posted a 67 percent jump in full-year profit and said it will return $120 million to shareholders after the sale of medical insurance business to Australia’s nib.

It was “a very good result, unaffected by any major claims and with proceeds from the sale and some cash from their balance sheet returned to shareholders,” Williamson said.

Guinness Peat, the investment company that’s winding down its portfolio, rose 0.9 percent to 59 cents.

Methven, the tapware maker, rose 5.2 percent to $1.42 after reporting a worse-than-expected 27 percent drop in first-half profit on its unprofitable British operation. It still managed to declare a 4.5 cent interim dividend.

Pyne Gould Corp fell 15 percent to 23 cents, and earlier plumbed a record low 22 cents, following chairman Bryan chairman Mogridge told shareholders yesterday that the company won’t pay dividends and the board is “seriously considering the domicile of the company,” which is unlikely to be New Zealand.

Argosy Property, whose shareholders agreed to corporatise the company after buying out its ANZ Bank-owned manager last year, rose 0.5 percent to 93 cents after lifting first-half earnings 29 percent as it reaped the benefits of a cheaper cost structure from bringing management inhouse.

Fisher & Paykel Healthcare was the biggest decliner on the NZX 50, falling3.1 percent to $2.51 after shedding its 5.4 cent interim dividend. Vital Healthcare Property Trust dipped 0.8 percent to $1.26 after shedding its 1.925 cent interim payment.

Goodman Fielder, the Australasian food manufacturer, rose 6.2 percent to 86 cents, the biggest percentage gain on the NZX 50.

Fletcher Building, the biggest company on the bourse, fell 0.5 percent to $7.81. Telecom gained 0.2 percent to $2.35.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news