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

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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