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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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