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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news