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

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news