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

 


MARKET CLOSE: NZ shares gain on growth outlook

MARKET CLOSE: NZ shares gain on growth outlook; Fletcher, Healthcare, Wynyard rise

By Suze Metherell

Jan. 13 (BusinessDesk) – New Zealand shares rose, pushing the NZX 50 Index to a two-month high, on optimism the market will extend a two-year rally in the face of stronger economic growth. Fletcher Building, Fisher & Paykel Healthcare and Wynyard Group paced the advance.

The NZX 50 rose 35.010 points, or 0.7 percent, to 4899.401, the highest since Nov. 19. Within the index, 22 stocks rose, 18 fell and 10 were unchanged. Turnover was about $99 million, returning to pre-Christmas levels as more market participants returned from their summer holidays.

Fletcher, the biggest company on the NZX 50, rose 1.7 percent to $9, the highest in a month.

"Today was the first real day back in the market – it is widely expected that the New Zealand economy will be strong this year," said Matthew Goodson, managing director at Salt Funds Management.

"Fletcher building is the obvious beneficiary of the recovery - but the key headwind will be the strong kiwi dollar,” he said. The Australian building industry is also picking up, which is positive for Fletcher.

F&P Healthcare gained 2.4 percent to $3.92, heading back toward the seven-year high reached in December. The maker of breathing masks and respirators has surged 60 percent in the past 12 months, three times the gains of the NZX 50.

Healthcare has received “a reasonable amount of favour” in the US, with its respirators and sleep apnea masks, Goodson said.

Wynyard, the security software firm, surged 16 percent to $2.20, adding to last week’s 64 percent gain. The shares have almost doubled from the listing last July as the company spun off from Jade Software won customers. Today it affirmed 2013 sales met its target of $21.5 million.

The “darlings of the market”, such as Wynyard continue to attract investors, Goodson said. “People seem happy to buy stories today in promise of earnings tomorrow."

Xero, the biggest gainer on the bourse last year, was unchanged today at $39.95. Diligent Board Member Services fell about 4 percent to $4.38.

Telecom rose 1.3 percent to $2.33 and Chorus gained 2.7 percent to $1.52. Auckland International Airport rose 1.1 percent to $3.60.

A2 Corp, which markets milk with a protein variant said to have health benefits, fell 1.1 percent from a record high to 91 cents. The shares have been rallying as investors look for ways to gain exposure to dairy products. South Island dairy processor Synlait Milk rose 1.5 percent to $4.01 while Fonterra Shareholders’ Fund, which carry the rights to dividends from the dairy giant’s farmer-owned shares, fell 0.5 percent to $5.63.

“There is a general euphoria at the moment in dairy products,” Goodson said.

Port of Tauranga, the nation’s busiest export port, rose 3.4 percent to $14.20, the highest in almost four months, after announcing it has agreed to acquire a 14 hectare site south of Christchurch for a freight hub, expanding its reach in the South Island after buying half of Timaru’s port last year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news