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

 


MARKET CLOSE: NZ shares gain as pockets of value seen

MARKET CLOSE: NZ shares gain as pockets of value seen; Michael Hill, Contact rise

June 17 (BusinessDesk) – New Zealand shares rose for second day after the NZX 50 Index’s slide from its mid-May record high gave investors confidence there were ‘pockets of value’ emerging in a relatively expensive market. Michael Hill International and Contact Energy gained.

The NZX 50 rose 26.656 points, or 0.6 percent, to 4447.637. Within the index, 32 stocks rose, 13 fell and five were unchanged. Turnover was a lower-than-average $81 million.

Jewellery chain Michael Hill gained 3.9 percent to $1.33 after figures showed consumer confidence was at a three-year high this month, buoyed by an improving economy, low interest rates, and rising house prices. Clothing chain Hallenstein Glasson rose 0.2 percent to $4.98 and online auction site Trade Me increased 0.6 percent to $4.73.

Contact, the biggest utility on the NZXZ 50, gained 3 percent to $5.10. New Zealand Oil & Gas rose 3.6 percent to 86 cents and insurer Tower climbed 3.1 percent to $1.99.

“We had been struggling mightily to find any value whatsoever – now we’re starting to see the odd pocket of value,” said Matthew Goodson, managing director at Salt Funds Management.

Last year stocks were “as cheap relative to bonds as they had ever been,” he said. “Now the market is somewhat more expensive than average with bond yields 50 basis points off their lows.”

Ebos Group gained 1.4 percent to $9.70, Chorus was up 1.6 percent to $2.60 and Freightways climbed 1.6 percent to $4.50.

Units in the Fonterra Shareholders’ Fund fell 0.3 percent to $7.21 after Fonterra Cooperative Group announced plans to spend $30 million upgrading its dry storage in Taranaki. The dairy exporter wants to clamp down on freight costs as it looks to lift storage near processing facilities within easy access to ports.

Cavalier Corp fell 2.3 percent to $1.67 after founder and shareholder Tony Timpson died, aged 80. Timpson built up the carpet maker in 1972 with Grant Biel, only retiring from the board of Cavalier in 2009.


Pay-TV operator Sky Network Television, which has a free-to-air channel, rose 1.2 percent to $5.70 after free-to-air broadcaster MediaWorks NZ was put into receivership, as part of a restructuring plan which will see its lenders take control.

Fletcher Building gained 1.2 percent to $8.28 and Telecom rose 1.1 percent to $2.245. Infratil rose 1.4 percent to $2.23.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news