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

 


MARKET CLOSE: NZ shares rise for fifth session, led by SKL

MARKET CLOSE: NZ shares rise for fifth session; Skellerup, Cavalier lead

Jan. 11 (BusinessDesk) – New Zealand shares rose for a fifth straight session, as the local market continued to bask in its status as relatively high yielding in an economy that’s growing modestly. Skellerup Holdings and Cavalier led gainers and Fletcher Building reached a 19-month high.

The NZX 50 rose 12.67 points, or 0.3 percent, to 4131.754, a new five-year high. Within the index, 31 stocks rose, 12 fell and seven were unchanged. Turnover was $90.9 million.

Skellerup, a manufacturer of milking equipment and rubber goods, rose 1.9 percent to $1.64. The stock has a dividend yield of 7.3 percent. Cavalier, a carpet maker set to benefit from the Christchurch rebuild and a pick-up in building activity, rose 1.8 percent to $1.71.

“Very low interest rates have forced people into stocks to find yield,” said Matt Goodson, portfolio manager at BT Funds Management. “The market started last year significantly under-valued. Now it’s fair value.”

Telecom rose 0.4 percent to $2.31. The stock has a dividend yield of about 13 percent.

Fletcher, the biggest company on the NZX 50, rose 0.6 percent to $8.72, the highest since June last year. The company is rated ‘outperform’ based on the consensus of 11 recommendations compiled by Reuters.

Michael Hill International fell 3.2 percent to $1.21 after the jewellery chain said sales growth stalled in the second quarter, which limited earnings growth in the first half of the year.

“December quarter sales, including the critical Christmas trading period, fell short of our forecasts and didn’t deliver the improvement over last year that the company had expected,” the Brisbane-based company said in a statement.

Goodson said investors are on watch for any other company that come out ahead of earnings season with updated guidance.

Units of the Fonterra Shareholders’ Fun rose 0.6 percent to $7.31. The fund will join the NZX 50 on Jan. 21, replacing Cavalier, according to an NZX statement that came out after the close of trading.

APN News & Media, which publishes the New Zealand Herald, rose 5.9 percent to 36 percent on the NZX.

Vital Healthcare climbed 1.6 percent to $1.26. Nuplex Industries rose 1.6 percent to $3.21.

Trade Me, the auction website, gained 1.5 percent to $4.04 and courier company Freightways rose 1.4 percent to $4.38. Contact Energy, the biggest power company on the NZX 50, was unchanged at $5.15.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news