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

 


MARKET CLOSE: NZ shares gain; Air NZ at $1.67

MARKET CLOSE NZ shares gain as Auckland Airport offers tax-efficient return, Air NZ up

Nov. 28 (BusinessDesk) – New Zealand shares rose, after Auckland International Airport proposed a tax-efficient capital return of $454 million and Air New Zealand continued to trade in heavy volumes, rising above the price of the government selldown.

The NZX 50 Index rose 10.103 points, or 0.2 percent, to 4809.455. Within the index, 22 stocks rose, 18 fell and ten were unchanged. Turnover was $315 million, including $203 million, or 22.5 million shares of Fletcher Building.

Auckland Airport climbed 1.6 percent to $3.47. The capital return, via a cancellation of one in 10 shares at $3.43, will allow the nation’s busiest gateway to complete the transaction with minimal tax implications for shareholders, while leaving it with sufficient resource to fund its capital spending and preserve its A- credit rating.

“It’s a good outcome for investors,” said Shane Solly, who manages more than $200 million at Mint Asset Management. “In lieu of a dividend this is a more effective outcome.”

Air New Zealand rose 2 percent to $1.67, surpassing the $1.65 a share at which the government sold 20 percent of the airline. The shares initially fell after the selldown, reflecting some imbalances in the sale allocations.

“Air New Zealand is working its way through its placement,” Solly said.

Chorus, the network operator facing regulator enforced price cuts, fell 2.5 percent to $1.785. Any hope the government had that its support partners would vote to allow direct intervention on the price of copper-wire broadband services has evaporated with the United Future and Maori parties both pledging not to support such legislation.

“Chorus is getting knocked around again with these comments on the copper tax,” Solly said.

Telecom, which pays Chorus for access to its copper lines, rose 0.4 percent to $2.315.

Fletcher Building fell 0.8 percent to $9.15 and the biggest stock on the NZX 50 was also the heaviest traded today, with a block trade going through via the ASX, which may trigger a substantial security holder notice.

Mint’s Solly said notwithstanding today’s volumes, the company “is still benefitting from the general recovery in Australia and New Zealand and to a lesser extent, the US.”

Abano Healthcare was unchanged at $7.20 after a bidding group led by Archer Capital withdrew its proposed takeover of the company.

Comvita, the Manuka honey products company, rose 1.4 percent to $3.70 after saying a margin squeeze resulted in a first-half loss of $790,000.

Kathmandu, the outdoor clothing chain, rose 3.1 percent to $3.72 and was the biggest gainer on the NZX 50.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news