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

 


MARKET CLOSE: NZ shares gain on Chorus regulatory delay

MARKET CLOSE: NZ shares gain on Chorus regulatory delay, Summerset at record

Feb. 8 (BusinessDesk) – New Zealand shares rose, led by network company Chorus after the government pushed back draft plans to regulate its prices pending a wider review. Summerset Group rose to a new record on optimism about returns from retirement villages.

The NZX 50 Index gained 30.48 points, or 0.7 percent, to 4225.72. Within the index, 26 stocks rose, 17 fell and seven were unchanged. Turnover was a higher than average $195 million, with increased trading in Chorus and SkyCity Entertainment Group.

Chorus, the network company spun off from Telecom in 2011, jumped 10 percent to $3.15, regaining about half its losses when the Commerce Commission made a draft recommendation on cutting its prices in early December. Telecom gained about 2 percent to $2.35.

“For Chorus, even though we still don’t know the outcome it gives the market confidence the uncertainty will disappear,” said Greg Easton, an adviser at Craigs Investment Partners. “There’s confidence there is still an investment case for Chorus and the whole sector.”

Summerset Group, the retirement village operator that listed in late 2011, rose 3.6 percent to $2.57 – up from its initial public offering price of $1.40.

“People are buying into the story that they want Ryman-type returns,” Easton said. Rival resthome operator Ryman’s shares have almost doubled in the past two years. Ryman slipped 0.7 percent to $4.55 today.

SkyCity, the hotel and casino group, rose 1.5 percent to $4.09. The company is due to post its interim results next week and analysts are expecting a strong result, as they are with auction site Trade Me, up 2.2 percent to $4.28 today.

“We’re expecting good results from them and analysts are picking them to deliver,” Easton said. “They’ll get hammered if they don’t deliver.”

The NZX announced after the close of trading today that Trade Me will join the NZX 10 Index effective Feb. 18, replacing Sky Network Television whose index weighting is lowered because of News Corp's 44 percent cornerstone shareholding. The pay-TV company rose 0.2 percent to $5.18.

Retailers were mixed. Warehouse Group gained 1.5 percent to $3.34 and Pumpkin Patch rose 1.5 percent to $1.35. Clothing chain Hallenstein Glasson Holdings fell 1.1 percent to $5.22 and outdoor equipment retailer Kathmandu declined 0.5 percent to $2.23.

Skellerup, which makes rubber goods and milking equipment, fell 1.2 percent to $1.65 and was the biggest decliner on the benchmark index.

Air New Zealand fell 0.8 percent to $1.26. The airline is a major customer of Wellington International Airport, which the Commerce Commission said was extracting excessive profit. The airport disputes the regulator’s view.

Infratil, which owns a half stake of the airport, declined 0.8 percent to $2.41.

Fletcher Building, the biggest company on the NZX 50, rose 0.7 percent to $8.96 and was the most heavily traded stock by value.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news