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

 

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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