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


MARKET CLOSE: NZ shares climb to new high, Fletcher gains

MARKET CLOSE: NZ shares climb to new five-year high as Fletcher rally continues

Jan. 31 (BusinessDesk) – New Zealand shares continued their strong run-up since the New Year, with Fletcher Building hitting a new five year high of $9.52, although Fonterra Shareholders Fund units dropped back below $7 for the first time this year as fallout from the DCD issue continued.

The NZX 50 Index rose 5.101 points, or 0.12 percent to 4,252.647, its highest since late since late October 2007. Despite the overall increase, within the index, 17 stocks rose, 21 fell, and 12 remained unchanged. Turnover was $126.911 million.

“This is traditional for us,” said Rickey Ward at Tyndall Investment Management. “Generally, we start the year strong because people think it can’t get worse, and then you get the earnings season and that tends to temper enthusiasm.”

However, signs in the world and local economies at the beginning of 2013 do look stronger than they have for some time, Ward said, and a further rise in the New Zealand market was conceivable.

“Eight to 10 percent would be a logical move from here and you could easily justify a higher number than that,” based on New Zealand shares’ relatively high dividend yields compared to other markets.

However, it was still likely many companies would reflect tough 2012 trading conditions in their half-year results, due for release to the NZX over the next few weeks.

“Corporates are often not comfortable enough to predict the next 12 months,” he said.

Leading the index higher today was dual-listed OceanaGold, up 3.82 percent to $3.26, Restaurant Brands, up 1.81 percent to $2.81, and New Zealand Oil & Gas, which announced a return to two dividends a year and positive exploration plans earlier this week. NZOG shares closed up 1.69 percent on the day, at 90 cents. Index heavyweight Fletcher Building was up 1.38 percent to $9.52, its highest in almost five years.

Meanwhile, FSF units sank 0.71 percent to $6.98, having been above $7 since Dec. 12.

While the DCD issue appeared not to involve serious risks for Fonterra, no bad publicity was welcome, especially in the crucial Chinese market, where the People’s Daily editorialised critically at Fonterra’s handling of the discovery of tiny traces of the chemical in milk powder last September.

Fertiliser firms withdrew DCD from sale last Friday. Since then, FSF units have fallen from $7.23.

“We expect them to report some reasonable results,” said Ward.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news