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

 


MARKET CLOSE: NZ shares extend rally; Xero at record

MARKET CLOSE: NZ shares extend rally; Xero at record, Metlifecare at 5-month high

Oct. 22 (BusinessDesk) – New Zealand shares extended their rally, pushing the NZX 50 Index to an all-time high, as newly capitalised Xero closed at a new record and Metlifecare gained to the highest in five months after its biggest shareholder confirmed the sale of its stake.

The NZX 50 rose 29.232 points, or 0.6 percent, to 4831.789. Within the index, 20 stocks rose, 18 fell and 12 were unchanged. Turnover was $141 million.

Xero, the cloud-based accounting company whose US shareholders are bankrolling its assault on the US market, climbed 6.8 percent to $28.30. That gives the company, which is yet to make a profit, a market value of $3.61 billion.

Metlifecare rose 2.8 percent to $3.70, the highest since May 7. Australia’s Retirement Villages Group, the biggest shareholder, said this week it has hired Goldman Sachs to sell its 37.7 percent stake in the company. Rival operator Ryman Healthcare rose 1.9 percent to a record $7.41.

That stake “will certainly have some impact if it hits the market,” said James Lee, head of institutional equities at First NZ Capital. “That will remove all that overhang.”

PGG Wrightson, the rural services company controlled by Agria Corp, was unchanged at 39 cents after naming the Chinese company’s founder Alan Lai as its new chairman, replacing John Anderson, and forecasting a lift in full-year operating earnings

Kathmandu, the outdoor equipment retailer, rose 2.2 percent to $3.67.

Fletcher Building gained 1.4 percent to $9.64 after the Ministry of Business, Innovation and Employment announced plans for an ‘all of government’ procurement of building materials to take the sting out of an annual $3.3 billion spend in the next five to eight years. The government expects to ramp up its construction spending over that period because of the Canterbury rebuild and to deal with outstanding leaky-homes work.

Telecom Corp fell 0.2 percent to $2.275 after the telecommunications company confirmed it’s looking at selling its under-performing AAPT unit in Australia, though didn’t respond to speculation it may also exit its 10 percent stake in Hutchison Telecommunications Australia.

Vector was unchanged at $2.61 after chairman Michael Stiassny told shareholders at today’s annual meeting that it was looking at opportunities in Australia as opposed to acquisitions in New Zealand because local tax laws favoured foreign investment.

Dual-listed APN News & Media gained 6.5 percent to 49 cents on the NZX after it agreed to sell its remaining 48 percent stake in APN Outdoors for A$69 million, a premium to the A$51.6 million carrying value attributed to the investment in its first-half report.

Pacific Edge soared 47 percent to a record $1.06 after it signed its second deal in as many weeks with a US healthcare network provider, giving it access to 44 million people in the world’s biggest economy.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news