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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

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