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

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news