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

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news