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

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news