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

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news