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 We don't want to be put in an 'on the bench' situation" where a product was even temporarily withdrawn from sale.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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news