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

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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