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

 

Auckland Port To Recapture Gas: Union Calls On Ports To Stop Spewing Methyl Bromide

The Maritime Union of New Zealand welcomes the decision by Ports of Auckland to stop releasing methyl bromide emissions into the air. The move to fully recapture the toxic gas after fumigation sets a new benchmark for industry best practice. More>>

ALSO:

Retail: Banks Shoes Calls In Receiver

Banks Group, which runs 14 stores across the country under the brands including Banks Shoes and Shoe Connection, has been tipped into receivership at the request of director John Bank. More>>

ALSO:

NZ's Space Programme: Rocket Lab Makes It To Space (But Not Orbit)

Electron lifted-off at 16:20 NZST from Rocket Lab Launch Complex 1 on the Mahia Peninsula in New Zealand. It was the first orbital-class rocket launched from from a private launch site in the world. More>>

ALSO:

Earlier:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO: