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

 


MARKET CLOSE: NZ shares rise, led by Metlifecare, Telecom

MARKET CLOSE: NZ shares rise, led by Metlifecare, Telecom, Wrightson

Jan. 8 (BusinessDesk) – New Zealand shares rose in subdued January trading, led by Metlifecare, Telecom and PGG Wrightson as investors were drawn to the yields available on equities in the face of low interest rates.

The NZX 50 Index rose 5.52 points, or 0.1 percent, to 4090.36. Within the index, 13 stocks rose, 25 fell and 12 were unchanged. Turnover was $82.8 million.

Metlifecare, the retirement village operator that joined the NZX 50 on Dec. 24, rose 4.4 percent to $3.3, the highest since November 2008. Rival rest home company Ryman Healthcare fell 0.2 percent to $4.76 though it has soared 73 percent in the past 12 months.

Summerset Group, which joined the benchmark index at the same time as Metlifecare, fell 0.4 percent to $2.25 and has also gained 73 percent in the past year.

Telecom, the second-largest company on the exchange, rose 2.3 percent to $2.24. The phone company has a dividend yield of 13.6 percent. Fast food operator Restaurant Brands, with a dividend yield of 8.8 percent, gained 1.9 percent to $2.75. Sky City Entertainment Group, with a dividend yield of 5.9 percent, rose 1.3 percent to $3.77.

“In a low interest rate environment, people are looking to boost income through the stock market,” said James Smalley, client adviser at Hamilton Hindin Greene. “Continually low yields on fixed income are forcing investors to look elsewhere.”

Wrightson, the nation’s biggest rural services company, rose 2.2 percent to 46 cents. Smalley said strong demand in Fonterra Cooperative Group’s sale of units in its shareholders’ fund last year had focused attention on the rural sector “as a pretty good place to invest.”

“It’s now up to them to justify that as we move into reporting season,” he said.

Kathmandu, the children’s clothing chain, rose 2 percent to $2.04. Fisher & Paykel Healthcare, which makes breathing masks and respirators, gained 1.7n percent to $2.47.

Air New Zealand, the national carrier, rose 0.4 percent to $1.31.

Steel & Tube Holdings, which supplies steel products to the building industry, fell 2.8 percent to $2.40 and was the biggest decliner on the index today. NZ Oil & Gas fell 2.3 percent to 86 cents and Chorus, the network company spun off from Telecom in 2011, fell 1.7 percent to $2.85.

Fletcher Building, the biggest company on the NZX 50, declined 0.4 percent to $8.45.


(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news