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

 

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news