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

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news