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

 

MARKET CLOSE: NZ shares rise; Sky TV, Xero advance

MARKET CLOSE: NZ shares rise; Sky TV, Xero advance, Wrightson falls

March 15 (BusinessDesk) – New Zealand stocks ended the week on a high note, with the NZX 50 Index edging up to a new record, as news the government is adopting cloud computing added to Xero’s rally and investors were drawn to returns on offer in Sky Network Television.

The NZX 50 rose 5.95 points, or 0.1 percent, to 4387.05, bringing its gain this year to 7.7 percent. Within the index, 25 stocks rose, 19 fell and six were unchanged. Turnover was a higher-than-average $303 million.

Trading was led by Telecom, with larger than usual turnover in Infratil, Sky TV, Ryman Healthcare and Contact Energy, which traders said reflected portfolio adjustments by institutions.

Xero gained 7 percent to a record close of $10.70 and has soared 206 percent in the past 12 months as more investors bet on its ability to grow global scale and eventually translate sales into earnings. Helping stoke the appeal of cloud-based services, the Department of Internal Affairs this week launched a tender for an all-of-government Desktop-as-a-Service contract.

The New Zealand government’s use of cloud computing is “helpful” to Xero, said Shane Solly, portfolio manager at Mint Asset Management.

Sky TV rose 1.5 percent to $5.35, with almost 5 million shares changing hands. Volumes of trade in the stock have climbed since News Corp exited its 44 percent stake in the company, boosting liquidity in a stock that has a historical dividend yield of 6.5 percent.

“A lot of people are being drawn by the high dividend yield,” Solly said.

Telecom fell 2.2 percent to $2.23, with a higher-than-average 32.7 million shares changing hands. The shares have dipped this week after the company announced plans to wind back its Gen-I unit in Australia, cutting two-thirds of employees at the business.

Infratil, the investment company managed by Wellington-based Morrison& Co, was unchanged at $2.41 with 8.7 million shares changing hands – about 1.5 percent of the company. The company has held investor briefings on its diverse portfolio and has flagged the potential sell down of its Z Energy service stations into a separately listed firm.

Among property investors, Vital Healthcare rose 4.5 percent to $1.39 and Kiwi Income Property Trust gained 1.3 percent to $1.18.

PGG Wrightson, the nation’s largest rural services company, fell 7.7 percent to 36 cents after its 50.2 percent owner Agria Corp reported a wider first-half loss after taking an impairment against rent it had paid on un-used farmland it leases from village collectives and the loss on the sale of an asset.

“Agria had a pretty rotten result – it has got people questioning what it means for Wrightson,” Solly said.

Ryman rose 1.3 percent to $4.78 and Contact gained 2.2 percent to $5.59.

Fisher & Paykel Healthcare fell 4.1 percent to $2.60 having reached a multi-year high the previous day as the kiwi dollar fell. Fletcher Building, the biggest company on the NZX 50, was unchanged at $9.15.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fletcher Whittled: Fletcher Dumps Adamson In Face Of Dissatisfaction

Fletcher Building has taken the unusual step of dumping its chief executive, Mark Adamson, as the company slashed its full-year earnings guidance and flagged an impairment against Australian assets. More>>

ALSO:

No More Dog Docking: New Animal Welfare Regulations Progressed

“These 46 regulations include stock transport, farm husbandry, companion and working animals, pigs, layer hens and the way animals are accounted for in research, testing and teaching.” More>>

ALSO:

Employment: Most Kiwifruit Contractors Breaking Law

A Labour Inspectorate operation targeting the kiwifruit industry in Bay of Plenty has found the majority of labour hire contractors are breaching their obligations as employers. More>>

ALSO:

'Work Experience': Welfare Group Opposes The Warehouse Workfare

“This programme is about exploiting unemployed youth, not teaching them skills. The government are subsidising the Warehouse in the name of reducing benefit dependency,” says Vanessa Cole, spokesperson for Auckland Action Against Poverty. More>>

ALSO:

Internet Taxes: Labour To Target $600M In Unpaid Taxes From Multinationals

The Labour Party would target multinationals operating in New Zealand to ensure they don't avoid paying tax if it wins power and is targeting $600 million over three years through a "diverted profits tax," says leader Andrew Little. More>>

ALSO: