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

 


MARKET CLOSE: NZ shares rise with global rally, Xero gains

MARKET CLOSE: NZ shares rise with global rally, Xero hits record, Warehouse, Chorus gain

By Suze Metherell

Jan. 16 (BusinessDesk) – New Zealand shares rose, joining a global rally, as demand for so-called growth stocks drove Xero and Wynyard Group to record levels, Warehouse Group led gains in most retailers and Chorus reached a month-high.

The NZX 50 Index advanced 47.875 points, or about 1 percent, to 4913.034, the highest since Nov. 18. Within the index, 30 stocks rose, 11 fell and nine were unchanged. Turnover was $102 million.

Stocks rose on Wall Street after stronger than expected retail sales data, pushing the Nasdaq Composite Index up 1.7 percent, and stocks continued to rise in Asia after the World Bank lifted its global growth forecasts. Japan’s Nikkei 225 Index climbed 2.2 percent and Australia’s S&P/ASX 200 Index rose about 1 percent.

Xero gained 5.9 percent to $42.35, valuing the cloud based accounting system at $5.4 billion and promoting the company to second-largest on the benchmark index behind Fletcher Building. Security software company Wynyard Group gained 7.7 percent to a record close of $2.25.

“The juggernaut that is Xero continues,” said James Smalley, a director at Hamilton Hindin Greene. “Investors are prepared to pay for growth but the key will be those companies need to deliver on that growth. If you don’t meet the forecasts the market can be very savage.”

“Global markets certainly had a positive influence” on New Zealand shares, he said.

Warehouse Group, the biggest listed retailer, rose 3.6 percent to $3.79 after agreeing to buy the SchoolTex school uniform business of clothing chain Postie Plus for $9 million. Postie Plus was unchanged at 10 cents.

Kathmandu rose 0.9 percent to $3.35, Michael Hill International gained 0.7 percent, $1.45 and Hallenstein Glasson Holdings rose 2.7 percent to $4.25.

Chorus, one of the worst performers on the bourse last year, gained about 2 percent to $1.54. The network company is awaiting the government’s decision on whether it will push back on regulated pricing set by the Commerce Commission which Chorus says hinders its ability to build the nation’s ultrafast broadband network.

“Chorus, which as the Queen might say, last year had an annus horribilis, is recovering quite nicely,” Smalley said.

A2 Corp rose 2.3 percent to 90 cents as investors continued to invest in the outlook for dairy products. Fonterra Shareholders’ Fund was unchanged at $5.68.

“Interest in the dairy sector certainly continues apace,” Smalley said. “Fonterra Shareholders’ Fund doesn’t seem to be affected by the recall of potentially contaminated E. Coli cream.”

Retirement village operator Ryman Healthcare gained 2.2 percent to $8.32, Air New Zealand rose 2.1 percent to $1.69, Telecom climbed 1.9 percent to $2.40 and Fletcher Building gained 1.2 percent to $9.03.

Port of Tauranga rose 1 percent to $14.75, extending is gains since announcing this week it will build a freight hub on the outskirts of Christchurch extending its reach in the South Island.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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