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

 


MARKET CLOSE: NZ shares rise, led by Wrightson, NZOG

MARKET CLOSE: NZ shares rise, led by Wrightson, NZOG; Fletcher falls

Feb. 4 (BusinessDesk) – New Zealand shares rose, pushing the NZX 50 Index back toward its five-year highs, led by PGG Wrightson and NZ Oil & Gas as commodity prices rose and investors continued to be drawn to the relatively attractive dividend yields.

The NZX 50 gained 0.46 points, or 0.01 percent, to 4246.40, edging back to the five-year high 4252.65 reached on Jan. 31. Within the index, 25 stocks rose, 14 fell and 11 were unchanged. Turnover was $93 million.

The average dividend yield across the NZX 50 is about 7 percent, which compares favourably to two-year term deposit rates of about 4.3 percent. Separately the ANZ Commodity Price Index of resources New Zealand ships overseas rose 0.3 percent to a 10-month high in January, though in kiwi dollar terms, prices fell.

“Low interest rates are having quite an effect. More and more people are moving funds from fixed deposits to equities,” said Grant Williamson, a director at Hamilton Hindin Greene. Demand is also being fuelled by KiwiSaver funds, he said.

Wrightson, the nation’s biggest rural services company, rose 4.7 percent to 45 cents. Units of the Fonterra Shareholders’ Fund climbed 1.4 percent to $7.18 and NZ Oil & Gas rose 2.7 percent to 95 cents.

Fletcher Building, the biggest company on the NZX 50, fell 2.2 percent to $9.19, having gained 12 percent so far this year. The construction company is expected to be one of the biggest beneficiaries of the rebuild of Christchurch from earthquake damage and its results later this month will be keenly watched.

“Investors are positioning themselves ahead of this month’s earnings season,” Williamson said. With Fletcher, “the best is yet to come but the market got a little bit ahead of itself with that share price.”

Steel & Tube, which sells steel building materials for the construction industry, rose 1.2 percent to $2.52.

Fisher & Paykel Healthcare rose 1.3 percent to $2.41. Among other manufacturers, Rakon climbed 2.8 percent to 37 cents and Nuplex Industries was unchanged at $3.32.

Air New Zealand rose 2.4 percent to $1.29 and Auckland International Airport gained 1.6 percent to $2.88.

Contact Energy, the biggest power company on the exchange, gained 1.2 percent to $5.26. Ryman Healthcare rose 1.1 percent to $4.68.

Seeka Kiwifruit Industries rose 5.3 percent to 5 cents, though on tiny volume, after Kiwifruit growers Satara Cooperative Group and EastPack said they will resume talks on merger plans shelved after the outbreak of the Psa vine bacteria two years ago.

Satara was unchanged at 40 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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