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

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news