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

 


MARKET CLOSE: Fonterra Fund produces historic stag - up 26%

MARKET CLOSE: Fonterra Fund produces historic stag - up 26% on day one

By Paul McBeth

Nov. 30 (BusinessDesk) - The historic listing of Fonterra units on the NZX caused mammoth volumes by New Zealand market standards and the biggest listing day stag that investors have seen for years.

The non-voting units, which launched at midday today, surged as high as $6.95, a 26 percent stag before closing at $6.85 from an offer price of $5.50. The fund's turnover was $179.8 million as investors scrambled to get a slice of dairy exporter Fonterra Cooperative Group's dividend stream.

Turnover in the NZX50 was lower, but substantial, at $175.2 million.

The most comparable float was the December 2011 listing of TradeMe, which rose 6.9 percent on its first day, and was up about 10 percent on its issue price by the end of its first week's trading, said Andrew Bascand, at Harbour Asset Management.

The fund attracted more trading than the rest of the NZX50 put together and is likely to have been attractive to foreign investors, who took 42 percent of the initial issue of units after Tuesday's book-build.

"Before that, you would have to back a long way" for a bigger stag, said Bascand.

At month's end, New Zealand shares rose 2.3 percent in November.

On the day, the NZX 50 index rose 33.31 points, or 0.8 percent, to 4050.08. Within the index 32 stocks gained, eight declined and 10 were unchanged. Turnover was $175.2 million.

"The excitement today has been around the Fonterra Shareholders' Fund - that's been a stunning debut," said Shane Solly, head of equities at Mint Asset Management. "It's the first time you've really been able to get access to the dairy industry, and is quite unique."

Xero led gainers on the top 50 index, climbing 6.8 percent to $6.88 after US investors Valar Ventures and Matrix Capital Management forked over $82 million to build their respective stakes in the local cloud accounting software provider, with $60 million of that fresh capital.

"The American investors appear to have a background in this type of tech sector - they're quite well-regarded and it's good growth capital," Solly said.

Fletcher Building, the biggest listed company on the exchange, rose 1.4 percent to $7.92 after government figures showed building consents were 32 percent higher in October than the same month a year earlier.

Solly said New Zealand's market has outperformed on the month, with recent capital returns by pay-TV operator Sky Network Television and insurer Tower giving heart to investors. Sky shares rose 1 percent to $5.27 and Tower fell 1 percent to $1.93.

Heartland New Zealand climbed 2.9 percent to 70 cents after the lender with aspirations to be a bank flagged flat annual profit for 2013 and announced a special dividend of 1.5 cents per share.

Infrastructure investor Infratil rose 2.9 percent to $2.325, specialty resins maker Nuplex Industries advanced 2.8 percent to $2.96, and transport logistics firm Mainfreight rose 2.3 percent to $11.20.

Warehouse was the biggest decliner, falling 3.2 percent to $3.05, while Telecom shed 1.7 percent to $2.31 and Air New Zealand dropped 1.2 percent to $1.28.

Vector declined 0.8 percent to $2.62 after the Commerce Commission set its default price-quality path pricing for 16 electricity distributers, and said the Auckland monopoly lines company was wrong in its comparisons with Australian peers.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news