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

 


MARKET CLOSE: NZ shares gain as investors favour growth

MARKET CLOSE: NZ shares gain as investors favour growth stocks in reviving economy

By Tina Morrison

Jan. 10 (BusinessDesk) – New Zealand shares rose as investors turned to equities in search of growth on optimism local companies will benefit from a reviving economy.

The NZX 50 Index gained 49.517 points, or 1 percent, to 4,864.391. Within the index, 33 stocks rose, 10 fell and seven were unchanged. Turnover was $109 million.

“Investors are purely chasing growth,” said Grant Williamson, a director at brokerage Hamilton Hindin Greene. “They have read and seen and heard about the economic outlook for 2014 and it’s given investors a lot of confidence. Investors are looking for capital growth rather than dividend income and that is what is pushing this market at the moment.”

Wynyard Group is the second-best performer on the broader All Ordinaries index today, advancing 9.8 percent to a record close of $1.90. The stock has soared 64 percent this week after the intelligence software developer announced another deal in the Middle East, where its anti-money laundering software will be used by the GCC Exchange. The value of the contract wasn’t disclosed, but it adds to a pipeline of deals announced since November.

Milford Asset Management, which holds the stock, this week said the shares could climb to $2 apiece this year as investors factor in the company’s growth prospects.

“It does appear that investors are hunting for growth stocks in 2014 and the IT and software sector is one area they are concentrating on,” said Hamilton Hindin Greene’s Williamson. “Investors are getting quite excited about the prospects for Wynyard. It does appear to be retail investors buying into the stock.”

Xero, the accounting software specialist favoured as a growth stock in 2013, advanced a further 1.8 percent to close at a record $39.95.

Still, other technology stocks edged lower with SLI Systems down 2 percent to $1.95 and Diligent Board Member Services dropping 1.3 percent to $4.56.

“There is still good interest in all of the stocks but some have probably run a little bit hard and investors will want to be a little bit cautious about pushing Wynyard too much higher as well after having such a spectacular few days,” Williamson said.

Meanwhile, retirement village operator and developer Ryman Healthcare gained 2.4 percent to close at a record $8.12, following a 71 percent gain the past year on optimism about prospects for the company in an aging population.

“Ryman is considered to be a growth stock and that is what investors are looking for,” Williamson said.

Fletcher Building advanced 2.8 percent to $8.85 after a Housing Industry Association report showed Australia’s new home sales hit a two-and-a-half year high in November, boding well for residential construction activity in 2014.

“The ducks do seem to be starting to line up for Fletcher Building at the moment with investors starting to get back in that stock after a month or two of weakness in that share price, it has turned around today,” Williamson said. “Most investors are thinking the construction and building sector should have a pretty good year in 2014 with a shortage in housing and the Christchurch rebuild.”

The Fonterra Shareholders’ Fund was the second-worst performer on the benchmark index, down 1.7 percent to $5.66 as investors reduce their holdings after French food company Danone said yesterday it was taking Fonterra to court to recover costs associated with last year’s recall of whey protein concentrate.

“Investors are not liking that uncertainty so they are just lightening the load on the Fonterra shares at the moment,” Williamson said, adding he didn’t expect the units to weaken much further from current levels.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news