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

 


MARKET CLOSE: NZX 50 extends gain

MARKET CLOSE: NZX 50 extends gain, Kathmandu, Fletcher rise on positive economic sentiment

By Suze Metherell

March 7 (BusinessDesk) – The NZX 50 Index closed at a new record high, as investors were attracted to the New Zealand story of strong economic optimism and stable growth. Kathmandu Holdings led the index higher, paced by Fletcher Building.

The benchmark index climbed 10.856 points, or 0.2 percent, to 5125.652. Within the index, 20 stocks rose, 17 fell and 13 were unchanged. Turnover was $166.8 million.

The benchmark index broke through 5,000 points on Monday and closed on record highs throughout the week, spurred by good domestic economic data showing trade and commodity prices making strong gains. Outdoor goods retailer Kathmandu led gainers, up 4.7 percent to $3.59. Fletcher Building, New Zealand’s largest listed company, rose 1 percent to $9.90.

“Clearly economic optimism is a reason for investors to look here,” said Andrew Bascand, who helps manage about $1 billion in equities for Harbour Asset Management. “Globally, emerging markets are still a little bit tainted and therefore companies in New Zealand are looking attractive from an investment perspective.”

Network service provider Chorus rose 1.6 percent to $1.55. Clothing chain Hallenstein Glasson climbed 1.6 percent to $3.18 and Steel & Tube Holdings gained 1.3 percent to $3.14.

Warehouse Group declined 4.7 percent to $3.44. New Zealand’s biggest listed retailer was the benchmark index’s worst performer as shares resumed trading following a discounted stock offering to institutional investor to raise $100 million for a planned expansion into financial services.

“I don’t think anyone really understands the strategy,” Bascand said.

Fonterra Shareholders Fund, which gives investors exposure to the dairy cooperative, rose 0.5 percent to $5.96. Fonterra Cooperative Group, the world’s biggest dairy exporter, lifted its forecast for this season’s local milk supply.

“Compared to the volatility we’ve seen in the Fonterra share price it hasn’t really moved that much,” Bascand said. “Whenever they increase their payout ratio there are questions whether they can hold onto their margin.”

Tech stocks continued to be in favour, Xero, New Zealand second largest listed company, rose 0.7 percent to a record $44.79. Software as a service company SLI Systems rose 3.1 percent to $2.63 and security software specialists Wynyard Group rose 2.1 percent to $2.86.

“We’ve seen a big sea change in investors’ expectations for penetration of these tech companies in terms of revenue growth,” Bascand said.

Auckland International Airport fell 0.3 percent to $3.86, Air New Zealand slipped 0.8 percent to $1.90 and SkyCity Entertainment Group declined 1.3 percent to $3.90. Telecom dropped 0.2 percent to $2.46.

Summerset Group Holdings, the retirement village operator and developer, fell 0.6 percent to $3.46 after shedding rights to its 3.25 cents per share final dividend on March 24. Sky Network Television, New Zealand’s biggest pay-TV provider, slipped 1.1 percent to $6.33, as it shed rights to its 14 cents per share interim dividend on March 17.

Outside the benchmark index, dual-listed Goodman Fielder rose 1.5 percent to 68 cents, and on the ASX was up 0.8 percent to 63 Australian cents. The food and beverage distributor shed rights to its 1 Australian cent per share interim dividend on April 10.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news