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

 

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:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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