MARKET CLOSE: NZX 50 at record 5 years after Lehman collapse
MARKET CLOSE: NZX 50 at record on 5th anniversary of Lehman collapse
Sept. 16 (BusinessDesk) – New Zealand shares rose, pushing the NZX 50 Index to a record high on the fifth anniversary of the collapse of Lehman Brothers, as confidence about continued economic growth and a recovery in Australia’s housing market lifted stocks such as Fletcher Building.
The NZX 50 rose 42.681 points, or 0.9 percent, to 4693.623, the highest ever close for the benchmark index. Within the index, 28 stocks rose, 11 fell and 11 were unchanged. Turnover was $94.7 million.
The index’s gains coincide with Australia’s S&P/ASX 200 Index rising to a 5-year high on optimism a new government across the Tasman will do more to drive that economy, where the housing market is reviving from a slump. Fletcher Building, which counts Australia as its second-largest market, gained 2 percent to $9.65 and has gained 13 percent this year.
“There’s quite a lot of optimism there will be a big pickup over there is the building sector. The new government’s going to do what it can to get things pumping again,” said Greg Easton, an adviser at Craigs Investment Partners. New Zealand’s economic outlook “is positive and the market is catching up on that too.”
Brisbane-based Michael Hill International gained 3.5 percent to $1.48. Among other companies with revenue in Australia, Kathmandu Holdings rose 3.5 percent to $3 and Ebos Group climbed 0.6 percent to $10.20.
SkyCity Entertainment Group, which finds out tomorrow if the Queenstown convention centre it is shortlisted to run gets approval, rose 0.8 percent to $3.96. Argosy Property fell 0.5 percent to 94 cents after announcing the $38 million purchase of a warehouse in Wiri, South Auckland.
Xero, the cloud-based accounting firm, rose 1.6 percent to $18.82 and Diligent Board Member Services rose 2.1 percent to $5.84.
Telecom gained 2.2 percent to $2.325 and network operator Chorus rose 1.4 percent to $2.92.
Abano Healthcare rose 2.3 percent to $6.70 after the company rejected a revised takeover proposal from led by a shareholding director and a buyout firm.
Freightways was the biggest gainer on the NZX 50, rising 4.6 percent to $4.37. Skellerup Holdings rose 3.1 percent to $1.65 and Trade Me Group gained 2 percent to $4.55.
Ryman Healthcare rose 1.5 percent to $7 and Summerset Group gained 1.6 percent to $3.16.