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

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news