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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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