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

 

Statistics: Net Annual Migration Passes 71,000

A record 71,300 more migrants arrived in New Zealand than left in the January 2017 year, Statistics New Zealand said today. This surpassed the previous annual record set in December 2016. More>>

ALSO:

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news