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

 


MARKET CLOSE: NZ shares rise to new 5-yr high; Air NZ jumps

MARKET CLOSE: NZ shares rise to new 5-year high; Air NZ jumps

Feb. 28 (BusinessDesk) – New Zealand shares rose to a new five-year high as investors cheered Air New Zealand’s profit growth and Fletcher Building pushed back above $9.

The NZX 50 Index rose 43.68 points, or 1 percent, to 4320. Within the index, 25 stocks rose, 15 fell and 10 were unchanged. Turnover of $250 million included more than 10 million Trade Me shares.

Air NZ climbed 4.1 percent to $1.40, a level it last reached in February 2011. The airline, which is 73 percent state-owned, posted first-half profit that more than doubled after lifting passenger volumes and boosting yields on international routes, while keeping costs in check.

“They done a lot of restructuring over the years on their long haul,” said Grant Williamson, a director at Hamilton Hindin Greene. “They have turned things around very nicely. It was a great result, better than expected, and the share price has been rewarded.”

Fletcher, the biggest company on the NZX 50, rose 3.2 percent to $9.15 as equity markets across Asia rallied following gains on Wall Street. Helping local sentiment, a survey today showed business confidence has gained to a 19-month high.

“The markets are remaining in a bull trend,” Williamson said.

Units of the Fonterra Shareholders’ Fund fell 2.8 percent to $6.98 and shares of PGG Wrightson declined 2.4 percent to 40 as investors assessed the impact of drought on farming, especially dairy farming. The government yesterday declared drought in Northland and said other regions could follow.

Drought “could have a pretty big impact on milk production and manufacturing output,” Williamson said.

Tourism Holdings, which merged its campervan rental business with two rivals last year, fell 4.4 percent to 65 cents after cutting its annual earnings guidance on a deteriorating Australian market after posting a small first-half loss as expected.

Vector rose 1.1 percent to $2.90 after the Commerce Commission confirmed that the gas distribution network owner will have to cut its prices by 18 percent, and cut its wholesale gas transmission charges by 29.5 percent.

Trade Me, the auction website, rose 2.7 percent to $4.93. UBS AG and various of its funds today announced changes in their holdings of the stock.

Guinness Peat Group rose 2.6 percent to 60 cents after saying it will return cash to shareholders once it beds down the transformation into its Coats unit.

Michael Hill International, the jewellery chain, gained 4 percent to $1.30 and Telecom rose 2 percent to $2.42.

Turners & Growers rose 2 percent to $1.53 after posting a $15 million fill-year loss, reflecting asset writedowns.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news