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


MARKET CLOSE Fonterra holds up as NZX50 cracks 4,200

MARKET CLOSE Fonterra holds up as NZX50 cracks 4,200

Jan 28 (BusinessDesk) - New Zealand shares rose again today, cracking through the 4,200 mark on the NZX50 Index of leading stocks, as Fonterra fought a global media blitz to allay concerns about the safety of New Zealand milk.

The NZX50 closed up 4.616 points, or 0.11 percent, at 4,2204.437. Within the index, 25 stocks rose, 14 fell, and 11 were unchanged. Turnover was very light on a day when markets in Auckland and Australia were shut for public holidays, at $43.830 million.

Leading the market up was transport and logistics firm Freightways, which put on 2.06 percent to close at $4.45, followed by a 1.85 percent uptick in Skellerup Holdings shares to close at $1.65.

However, all eyes were on Fonterra Shareholders Fund unit prices on the first trading day since global media began paying attention to the discovery of minute traces of a chemical used to reduce greenhouse gas emissions from cattle, in milk powder.

Fonterra units fell from $4.23 over the day to close at $7.13, and often appeared well-supported at around $7.14. Total FSF volume was 601,770.

Fonterra chief executive Theo Spierings enlisted help from Prime Minister John Key to get the message out to key export markets for New Zealand's $14.5 billion dairy export trade that the chemical was at concentrations 100 times below European requirements and constituted no public health or safety risk.

Andrew Bascand, at Harbour Asset Management said Fonterra appeared to be front-footing the issue successfully with international investors.

"Commentary from our Chinese agents says they are comfortable with where we are at," he said. "The thing to watch for is for a country to want to be cautious. We don't want to be put in an 'on the bench' situation" where a product was even temporarily withdrawn from sale.

"Even if that did happen, it's an opportunity to invest," Bascand said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news