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

 


MARKET CLOSE: NZ shares rise; tech stocks gain

MARKET CLOSE: NZ shares rise; Diligent jumps on Facebook bandwagon

By Suze Metherell

Jan. 31 (BusinessDesk) – New Zealand stock rose with a global rally, as Diligent Board Member Services rose after positive news out of the US tech sector.

The NZX 50 Index climbed 24.741 points, or 0.5 percent, to 4874.583. Within the Index 26 stock rose, 18 fell and six were unchanged. Total turnover for the day was $102.7 million.

Overnight positive news from social networking website Facebook announcing strong advertising revenue on its smart-phone app underpinned a rally on Wall Street. Asian markets followed suit, with South Korea’s KOPSI 200 Index up 1.2 percent in afternoon trading. Japan’s Nikkei 225 Index rose 0.2 percent, while Hong Kong’s Hang Seng Index slipped 0.5 percent.

“With high growth stocks, like Diligent, they respond to any good news in the tech sector,” said Peter McIntyre, investment advisor at Craigs Investment Partners. “Overnight there was good news out of Facebook, and here tech stock responded to that.”

Diligent, which is in the process of restating its accounts, rose 2.6 percent to $4.35. Fellow tech stock, cloud-based accounting software company Xero also gained 1.8 percent to $41.49. The Wellington-based company said its cash-burn rose at a slower pace in the December quarter.

The market considered Reserve Bank governor Graeme Wheeler’s reiterated promise to hike interest rates, causing dividend paying investments, like property stock, to lose their appeal.

“The market is in a state of flux at the moment. We’ve had low interest rates for a period of three years now,” said McIntyre. “So we are seeing some rejigging over stocks that are interest rate sensitive.”

Precinct Properties New Zealand dropped 1 percent to 98.5 cents, Property for Industry declined 0.4 percent to $1.265. Goodman Property slid 0.5 percent to 96.5 cents, and Argosy Property fell 0.6 percent to 91 cents. DNZ Property Fund was unchanged at $1.52

Blue chip stocks were up, with New Zealand’s biggest company Fletcher Building gaining 2.4 percent to $9.08. Auction website Trade Me Group climbed 1.7 percent to $4.09. Telecom was up 1.3 percent to $2.35, and casino operator Skycity Entertainment group rose 0.5 percent to $3.87.

Fonterra Shareholders Fund gained 0.6 percent to $6.30 after government figures showed growing dairy exports boosted the trade balance to a surplus of $523 million in December.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

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