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

 


MARKET CLOSE: NZ shares gain, on Vital Healthcare, SkyCity

MARKET CLOSE: NZ shares gain, on Vital Healthcare, SkyCity earnings, Heartland leads on acquisition

By Suze Metherell

Feb. 14 (BusinessDesk) – New Zealand stock rose as investors backed companies whose earnings didn’t disappoint. Vital Healthcare Property Trust led the index, paced by SkyCity Entertainment Group. Heartland New Zealand gained after announcing an acquisition of a mortgage company.

The NZX 50 Index rose 14.872 points or 0.3 percent to 4888.40. Within the index 21 shares rose, 19 fell and 10 were unchanged. Turnover was $124.8 million.

SkyCity extended yesterday’s gain rising 1.9 percent to $3.73. The casino operator delivered results on Wednesday that weren’t as bad as the market had expected.

“The stock had been sold down reasonably sharply over the past week,” said Matthew Goodson, who helps manage about $650 million at Salt Funds Management. “The market priced in a low expectation, and bad numbers, but that Adelaide project looks very attractive.”

Vital Healthcare rose 0.8 percent to $1.285. New Zealand’s largest listed medical and healthcare property investor posted a 48 percent lift in its half-year earnings. Three quarters of the trust’s assets are in Australia. The New Zealand dollar has appreciated about 13 percent against the Australian currency over the past year, crimping returns from companies with investments in Australia.

“It was a result dominated by FX and tax,” Goodson said. “A very confusing result with all sorts of currency hedging and also tax hedging. So we spent the day trying to pick through it but it seems relatively in line with its guidance.”

“The high kiwi is more likely to affect June half earnings, as it continues to come through. It is clearly going to be an issue for companies with large Australian arms,” Goodson said.

Brisbane-based jeweller Michael Hill International fell 1.4 percent to $1.38 after reporting first-half fell 26 percent to $16.2 million, in line with its forecast.

Heartland New Zealand led the index higher rising 2.3 percent to 91 cents. The lender announced an acquisition of a New Zealand and Australian home equity release mortgage business, which it expects will add up to $9 million in profit in its first full year following integration.

Telecom gained 1.7 percent to a nine-month high of $2.46.

“Telecom is up on probably a couple of things, one, Telstra had a good bounce following its results, and two, on the hopes of hearing more about future strategy from the company during its earnings,” Goodson said.

Auckland International Airport fell 1 percent to $3.58. Air New Zealand slipped 0.3 percent to $1.695. Fletcher Building, New Zealand’s biggest listed company, gained 0.3 percent to $9.48, while Sky Network Television rose 0.7 percent to $5.78.

Wellington-based Xero fell 0.02 percent to $40.14. The accounting software company will join the NZX 10, replacing infrastructure investment group Infratil on Feb. 24. Infratil was unchanged at $2.19.

Summerset Group Holdings fell 0.3 percent to $3.28. The retirement village operator gained resource consent to build a $55 million resthome in New Plymouth.

Outside the NZX 50, Rakaia-based Synlait Milk fell about 3 percent to $3.59. The dairy processor, which counts China’s Bright Dairy Food as a cornerstone shareholder, says the cost of expanding its laboratory and administration properties will more than double to $21 million.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news