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

 


MARKET CLOSE: NZ stocks rise; Telecom gains before dividend

MARKET CLOSE: NZ stocks rise; Telecom gains ahead of dividend, Chorus climb

By Suze Metherell

March 17 (BusinessDesk) – New Zealand stocks gained as investors sought out companies such as Telecom with relatively defensive earnings and reasonable dividend yield. Chorus rose as the network operator’s appeal against the regulator’s pricing methodology began in the Wellington High Court.

The NZX 50 Index rose 8.702 points, or about 0.2 percent, to 5088.026. Within the index, 20 stocks rose, 19 fell and 11 were unchanged. Turnover was $136.2 million.

Geo-political tensions in Ukraine, where Crimea has voted to rejoin Russia has stoked risk aversion among investors who are also looking for evidence China will manage to meet its target of 7.5 percent annual economic growth. New Zealand figures this week are expected to show the economy grew 0.9 percent in the fourth quarter, near the forecast the central bank gave last week when it hiked interest rates.

Telecom gained 1.2 percent to $2.48. New Zealand’s biggest telecommunications provider will shed rights to its 8 cents per share interim dividend on Wednesday. At today’s price it has a dividend yield of 6.5 percent.

“Telecom rose ahead of going ex-dividend and is seen as a great income even in a rising interest rate environment, and is relatively defensive,” said James Smalley, a director at Hamilton Hindin Greene. “The market as a whole is following what is going on, particularly in those overseas markets economically in China and politically in the Ukraine and it is definitely going to move our market one way or the other.”

Other defensive stocks such as the property sector gained. Kiwi Income Property rose 0.9 percent to $1.145, Argosy Property lifted 0.6 percent to 91.5 cents, Property for Industries advanced 0.4 percent to $1.205 and Precinct Properties climbed 0.5 percent to $1.02.

Chorus gained 0.3 percent to $1.68, and has declined 41 percent in the past 12 months. The telecommunications infrastructure builder is appealing the Commerce Commission’s pricing of its copper lines, arguing that the modelling the regulator used was too narrow and ignored a section of legislation aiming to support the government’s aims in building a nationwide fibre network.

“Chorus is holding up quite nicely - still a large number of question marks revolving around the stock which probably won’t get resolved for some months, and or years,” Smalley said. “But the worst seems to be over in terms of foreign funds selling out of the stock, which was what really drove it down.”

Warehouse Group, the biggest retailer on the bourse, rose 1.6 percent to $3.27. Consumer confidence is at a nine-year high, according to the Westpac McDermott Miller Consumer Confidence Index. The survey results come less than a week after the Reserve Bank raised interest rates from historic low levels on concern a buoyant economy will push up inflation.

Fletcher Building, New Zealand’s largest listed company, rose 0.2 percent to $9.60. Auckland International Airport rose 0.5 percent to $3.92. Xero, New Zealand’s second largest listed company, gained 0.3 percent to $42.05.

Melbourne-based gold miner OceanaGold led the index higher, jumping 11 percent to $3.25.

Fisher & Paykel Healthcare fell 1.6 percent to $4.21. The breathing apparatus manufacturer exporter, which counts the United States as its biggest market, finishes its financial year at the end of this month and investors are waiting to see how it will manage the headwind of a continuing high kiwi dollar, said Smalley.

Industrial rubber goods maker Skellerup was the benchmark index’s worst performer, dropping 3.3 percent to $1.77.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news