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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news