MARKET CLOSE: NZ shares rise, led by Auckland Airport

MARKET CLOSE: NZ shares rise, led by Auckland Airport, Heartland

March 12 (BusinessDesk) – New Zealand shares rose, led by Auckland International Airport after the effects of the NZ Super Fund’s selldown last month washed out of trading while Heartland NZ benefited from surging bank stocks in Australia.

The NZX 50 Index rose 12.18 points, or 0.3 percent, to 4378.76. Within the index, 24 stocks rose, 14 fell and 12 were unchanged. Turnover was $144 million.

Auckland Airport, the nation’s busiest gateway, rose 2.1 percent to $2.8, the highest close since the close before the night the Super Fund sold 7.6 percent of the company at $2.76 apiece. Today is also the last day to buy the stock and be entitled to the company’s 5.75 cent interim dividend.

“We’re perhaps starting to see the effect of the sell down gradually reduce,” said James Smalley, client adviser at Hamilton Hindin Greene. He said a seller typically has to offer a discount to exit a large stake as was seen in News Corp’s exit from Sky Network Television.

Sky TV was unchanged today at $5.18, having bounced back from the sale price News Corp’s exit price for its 44 percent stake of $4.80.

Heartland New Zealand, which gained a banking licence in December, rose 1.3 percent to 76 cents.

“Perhaps investors are seeing the major banks in Australia on a fantastic run and a little bit is flowing through into Heartland,” Smalley said.

Australia & New Zealand Banking Group slipped 1 percent to $36.30 on the NZX and has gained 15 percent this year. Westpac Banking Corp was unchanged at $38.70, having climbed 18 percent this year.

PGG Wrightson, the nation’s biggest rural services company, fell 4.9 percent to 39 cents after shedding its 2.2 cent first-half dividend and amid concern income from farmers will be hurt by widespread drought in the North Island.

Chorus, the network company spun off from Telecom in 2011, rose 1 percent to $2.94.

While the company sold off after its results its forecast dividends in the next couple of years are “well over double digits,” Smalley said.

Sky City Entertainment Group rose 1.2 percent to $4.32, the highest close since 2007. The casino and hotel operator has a dividend yield of about 5.4 percent.

“With yields around 3-4 percent for money in the bank, investors are looking for a bit more income,” Smalley said. “Until that changes, the market is going to be a pretty attractive place to be.”

Telecom gained 1.2 percent to $2.44 and Fletcher Building fell 1.7 percent to $9.10.

(BusinessDesk)

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