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

 


MARKET CLOSE: NZ stocks rise before Xmas, Fletcher gains

MARKET CLOSE: NZ stocks rise before Xmas, Fletcher gains on outlook

Dec. 24 (BusinessDesk) – New Zealand stocks rose on Christmas Eve, pushing the NZX 50 Index to a three-week high, as the outlook for the construction industry helped lift Fletcher Building and Warehouse Group led some retailers higher in the peak spending season.

The NZX 50 rose 45.30 points, or about 1 percent, to 4767.935 in the shortened pre-Christmas session. Within the index, 35 stocks rose, four fell and 11 were unchanged. Turnover was a modest $34 million.

Fletcher, the biggest company on the index, rose 2.1 percent to $8.72, the highest since Dec. 13 and has recovered from a four-month low reached last week. Steel & Tube Holdings, which sells steel building products, rose 2 percent to $3.

“Bargain hunters feel 2014 should be pretty good for the construction industry,” said Grant Williamson, a director at Hamilton Hindin Greene. Across the market, “buyers, although in small numbers, are in control.” Institutional volumes, though, have dried up as investors head away for their summer holidays, he said.

Warehouse, the biggest listed retailer, rose 2.7 percent to $3.75 as consumers flocked to stores for last-minute gifts. Paymark said spending in the first three weeks of December was 6.9 percent up on the same period last year, suggesting retailers may be in for a strong Christmas.

Trade Me Group, the auction website, gained 2.2 percent to $4.18 and Hallenstein Glasson Holdings, the clothing chain, rose 1.4 percent to $3.75. Pumpkin Patch, which sells children’s clothing, was up 1.2 percent to 82 cents. Michael Hill International rose 0.7 percent to $1.42.

Freightways led the index higher, rising 5.4 percent to $4.65. Sky Network Television gained 2.2 percent to $5.98.

MightyRiverPower rose 2.4 percent to $2.10, leading gains among stocks punished by concerns a change of government next year would see more regulation in power prices. Meridian Energy gained about 1 percent to $1.03, above the $1 initial price of the instalment receipts.

TrustPower edged up 0.2 percent to $6.52 and its controlling shareholder, Infratil, rose 1.3 percent to $2.29.Contact Energy rose 0.8 percent to $5.06.

"The potential formation of a Labour/Green coalition government is likely to weigh on the performance of the New Zealand equity market and is already starting to impact performance," brokerage First NZ Capital said in a note. "The re-election of the incumbent National-led government would likely be greeted positively by investors and give rise to a rebound in the market."

Stocks most likely to be negatively affected by a change of government are in the energy utilities sector such as Contact, Meridian, MightyRiverPower and TrustPower as well as those with regulatory risk including SkyCity Entertainment Group and Chorus, First NZ said.

Chorus, the network operator, fell 0.7 percent to $1.435 while SkyCity was up 1.3 percent to $3.85.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news