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

 

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>

OECD: NZ Economic Expansion Faces Long Term Challenges

The OECD Economic Survey of New Zealand discusses the gap between the strong short-term outlook and long-term challenges posed by low productivity growth and a changing labour market. More>>

ALSO:

GDP: