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

 


MARKET CLOSE: NZ shares rise to new 5-year high; FBU gains

MARKET CLOSE: NZ shares rise to new 5-year high; Fletcher, Steel & Tube gain

Jan. 10 (BusinessDesk) – New Zealand shares rose, pushing the NZX 50 Index to a new five-year high, as expectations of a pickup in building activity lifted companies such as Fletcher Building, Steel & Tube Holdings and Cavalier. PGG Wrightson rose to a 17-month high.

The NZX 50 rose 15.54 points, or 0.4 percent, to 4119.08, the highest since November 2008. Within the index, 27 stocks rose, 19 fell and four were unchanged. Turnover was $103.8 million.

Fletcher Building, the biggest company on the exchange, gained 2.6 percent to $8.67, the highest since June last year. The nation’s biggest construction and building materials firm has gained amid signs of life returning in the Australian home building market. Figures today showed building approvals across the Tasman in November were up 13.2 percent from a year earlier.

“There’s a lot of expectation of improved residential activity in Australia, which has been a bit rough,” said Shane Solly, portfolio manager at Mint Asset Management. Investors are also been drawn to the stock market in search of yield in the face of low returns on offer from fixed income, he said.

Steel & Tube, which sells steel building materials, gained 0.8 percent to $2.43, Cavalier, the carpet maker, rose 1.8 percent to $1.68.

Fast-food chain operator Restaurant Brands rose 1.8 percent to $2.85, leading gains among stocks with relatively high dividend yields. The company has a dividend yield of 8.68 percent.

TrustPower, which has a dividend yield of 7.2 percent, rose 1.4 percent to $8.50. Telstra Corp, with a dividend yield of 9.2 percent, rose 1.1 percent to $5.66 on the NZX.

“In the global beauty contest New Zealand still rates reasonably well,” Solly said. “Versus fixed interest, equities look pretty attractive.”

Wrightson, the nation’s biggest rural services company, rose 4.3 percent to 49 cents, helped by renewed optimism in the farming sector and the publicity from Fonterra Cooperative Group’s sale of units last year. Figures today showed New Zealand’s commodity export prices rose for the fifth straight month in December.

Pumpkin Patch, the children’s clothing chain, rose about 3 percent to $1.39, the highest since Dec. 12.

OceanaGold, operator of the Macraes gold field, fell 3.8 percent to $3.30, the biggest percentage drop on the NZX 50.

Nuplex Industries led manufacturers lower, falling 1.3 percent to $3.16 as the New Zealand dollar rose back above 84 US cents, eroding the value of overseas sales. Skellerup Holdings fell 1.2 percent to $1.61. Rakon fell 2.7 percent to 36 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news