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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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