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

 


MARKET CLOSE January rally takes NZX50 to highest since 2007

MARKET CLOSE January rally takes NZX50 to highest since Oct 2007

Jan 30 (BusinessDesk) - New Zealand shares rallied again as a "whiff of recovery" emerges about the forthcoming earnings season, amid an accumulation of more promising news about the world economy.

The NZX50 Index shot to 4,247.546, its highest since late October 2007, before the global financial crisis and just as New Zealand began heading into a domestic recession which preceded the global events.

That was a gain on the day for the leading stocks index of 47.25 points, or 1.12 percent, on turnover of a respectable $134.40 milllion. Within the index, 33 stocks rose,10 fell, and seven were unchanged.

"We have seen a very sharp rally in a very short period of time," said Shane Solly, at Mint Asset Management. "That tends to be what happens when people move asset classes so you get sharp reactions.

"We're certainly catching the whiff of a recovery story out there," Solly said.

Mint had forecast earlier this month there was "more juice" in the NZX tank, despite a 25 percent rise in the NZX50 last year. However, Solly was surprised by how quickly it's happened over January, ahead of the corporate earnings season that kicks off in earnest the week after next.

The impact of dividends and changes to the make-up of the NZX50 distorts long term trends, but the index is still watched as a bellwether.

Leading the index higher today was infrastructure investor Infratil, up 4.15 percent to $2.51, its strongest performance this month, followed by childrens clothes maker Pumpkin Patch, up 3.79 percent to $1.37, and Freightways, up 2.69 percent at $4.58.

Retirement home operators Metlifecare and Ryman Healthcare were the next biggest risers, up 2.53 percent to $3.24 and 2.4 percent to $4.69 respectively.
After announcing a return to two dividend payments a year and strong prospects in Tunisia and New Zealand, NZ Oil & Gas was up 2.30 percent to 89 cents.

Oceana Gold was the biggest loser, down 3.38 percent to $3.25, while Fonterra Shareholder Fund units closed at$7.05, down 0.28 percent, after falling as low as $7.01 during the day after a difficult week fending off fears about the discovery of minute traces of a nitrification inhibitor in milk powder.

(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
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news