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

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news