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

 


MARKET CLOSE: NZ shares extend rally; Mainfreight, DIL rise

MARKET CLOSE: NZ shares extend rally; Mainfreight, Diligent at records

Dec. 20 (BusinessDesk) – New Zealand shares rose to a new five-year high, as foreign investors were drawn to the nation’s relatively attractive returns and cheered the expansion plans of companies such as SkyCity Entertainment Group. Mainfreight and Diligent Board Members Services hit new records.

The NZX 50 Index rose 52.45 points, or 1.3 percent, to 4075.45, the highest close since December 2007. Within the index, 33 stocks rose, eight fell and nine were unchanged. Turnover was a higher-than-average $166 million, surprising traders who were expecting a pre-Christmas wind-down.

SkyCity, the casino and hotel operator, rose 1.3 percent to $3.84, extending its gains of yesterday when it announced it had reached agreement with the South Australia state government on the expansion of its Adelaide casino. Separately today SkyCity said it sold its half-share of Christchurch casino and has taken full ownership of Queenstown’s gaming centre.

The SkyCity announcement on Adelaide “has been very well received,” said David Price, a broker at Forsyth Barr. The Adelaide expansion added about 25 cents to the stock’s valuation, he said.

Offshore investors were drawn to double-digit returns on New Zealand stocks, assuming for example, a 6n percent dividend yield and some capital appreciation, Price said. “There’s a lot of fresh money coming into the market.”

Diligent, which has soared 159 percent this year, rose 5.8 percent to $5.30, leading the NZX 50 higher. Xero, the cloud-based accounting platform, fell 1.3 percent to $7.60.

The two tech companies have been the star performers on the bourse this year, with Xero climbing 179 percent. That’s prompted some key investors to trim their holdings, including Trade Me founder Sam Morgan, who has reduced his stake below 5 percent.

Trade Me declined 1.3 percent to $3.94. Australia’s Fairfax Media sold its 51 percent stake this week.

Mainfreight, the logistics and transport group, rose about 4 percent to a record close of $11.75. the stock is rated ‘outperform’ based on six analyst recommendations compiled by Reuters.

Fletcher Building, the biggest company on the NZX 50, rose 2.2 percent to $8.45. Government figures today showed the economy grew a lower-than-expected 0.2 percent in the third quarter, with much of the growth being driven by construction activity.

Telecom rose 1.3 percent to $2.32. Chorus, the network company spun off from Telecom last year, rose 4.4 percent to $2.84, recovering some of the ground lost last week when the regulator gave a draft view on network price controls. Contact Energy rose 3.1 percent to $5.34.

Rakon, which makes crystal oscillators used in smart phones and navigation systems, dropped 9.8 percent to 37 cents. The company cut its full-year earnings guidance because of sales delays and thinner margins.

Earnings before interest, tax, depreciation and amortisation would be $8 million to $12 million in the year ending March 31, down from its August guidance of $14 million to $16 million. The shares reached $5.80 a May 2007, a year after its listing

“Rakon has a history of continuing to disappoint,” Price said.

Smiths City Group, the Christchurch-based retailer, rose 3.7 percent to 56 cents after posting a 2.6 percent gain in first-half profit and saying retail conditions are difficult, especially for consumer electronics. It kept its first-half dividend unchanged at 1 cent a share.

Veritas Investments, the shell company listed on the NZX after Salvus Strategic Investments was wound up, jumped 17 percent to 7 cents after announcing it had agreed to buy the Mad Butcher franchisor business in a $40 million cash and scrip deal, and will seek more funding.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Scoop Business: ComCom Charges Hawkins’ Finance Companies Over Debt Recovery

The Commerce Commission has filed criminal proceedings against two finance companies run by former 1980s high-flyer Allan Hawkins over their debt recovery practices. More>>

ALSO:

Science Media Centre: The Big Science Stories Of 2014

It was a dramatic year for science, one that witnessed a severe outbreak of Ebola in West Africa and an historic mission to land a space probe on a comet. On the home front... headlines with animal testing for 'legal highs', 1080 use to tackle increased pest numbers and court action over genetically modified organisms among the most-covered stories. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news