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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Pre-Budget: Computer Emergency Response Team, Assemble!

John Key told the country's first ever Cyber Security Summit in Auckland that the government had earmarked funding set up a national Computer Emergency Response Team to help prevent and act on cyber incidents in partnership with the private sector and other organisations. More>>

ALSO:

Job Cutter Goes: Mark Weldon To Step Down As MediaWorks CEO

“When I joined MediaWorks in August 2014, I had a mandate to lead a significant change programme to bring the business back from receivership into a position where it could once again be a strong competitor in the market, with a sound and sustainable future. It was a big brief, laden with inherent challenges, but I took it in good faith and have dedicated myself fully to the goal since." More>>

ALSO:

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news