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

 


MARKET CLOSE: NZX 50 rises to new record

MARKET CLOSE: NZX 50 rises to new record; MRP, Meridian, Contact gain on political polls

By Suze Metherell

March 18 (BusinessDesk) – The NZX 50 Index rose to a new record, following a global rally, paced by power companies after recent political polls put the government ahead, helping dispel fears the opposition parties will be able to overhaul the electricity sector. MightyRiverPower, Meridian Energy and Contact Energy rose.

The benchmark index rose 47.638 points, or 0.9 percent, to 5135.664. Within the index, 27 stocks rose, 12 fell and 11 were unchanged. Turnover was $167 million.

Better than expected US industrial production figures kicked off a global rally in equity markets which carried on into Asia. Hong Kong’s Hang Seng was up 0.5 percent in afternoon trading, Japan’s Nikkei 225 index advanced 1.4 percent and Australia’s S&P/ASX was up 0.5 percent.

Power companies paced today’s gains after a New Zealand Herald’s DigiPoll survey put the governing National Party at 50.8 percent support ahead of the September election. Labour, the main opposition party, garnered 29.5 percent. A key election policy of the opposition parties is to regulate the electricity market, creating a single state-owned wholesale electricity buyer.

MightyRiverPower, the government controlled energy company, climbed 3.2 percent to $2.07, while fellow partially privatised electricity provider Meridian advanced 1.9 percent to $1.095. Contact rose 0.6 percent to $5.25. Vector, the Auckland-based lines company, lifted 2 percent to $2.54.

“The electricity sector is up, and I’m going to put it down to the Herald DigiPoll results which were published, because they’re up across the board,” said Greg Easton, investment adviser at Craigs Investment Partners. “If there is no change in government, then that sector could really outperform after the election.”

Xero, the cloud-based accounting software developer, led the market higher, up 3.7 percent to $43.61. Fletcher Building, New Zealand’s largest listed company, advanced 1.5 percent to $9.74.

Chorus, which has dropped 41 percent over the past year, rose 1.8 percent to $1.71. The telecommunications network operator 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 goal in building a nationwide fibre network.

“They are still at half of where they were, but they have generated enough confidence in certain sectors of the market for people to be interested in it again,” Easton said.

Ryman Healthcare rose 1.8 percent to $8.60, and has advanced 81 percent in the past 12 months. The retirement village operator has plans for eight new sites following recent acquisitions to expand its land bank.

Telecom rose 1.4 percent to a 10-month high $2.515, before it sheds rights to its interim dividend tomorrow.

Auckland International Airport rose 0.8 percent to $3.95. Casino operator SkyCity Entertainment Group increased 1.5 percent to $3.96. Sky Network Television slipped 0.2 percent to $6.24.

Melbourne-based miner OceanaGold was the day’s worst performer dropping 4.6 percent to $3.10. Outdoor goods retailer Kathmandu Holdings declined 1.7 percent to $3.45, while Air New Zealand slipped 1.6 percent to $1.84.

Hallenstein Glasson fell 2.2 percent to $3.07 and has been the NZX 50’s worst performer this year, sliding 19 percent. This is the clothing chain’s last week in the benchmark index before it is replaced by Pacific Edge, whose shares have gained 17 percent in the same period. The bladder cancer test developer slipped 1.3 percent to $1.54.

NZX was unchanged at $1.26. The stock market operator is planning to introduce a new market for small to mid-size businesses with fewer disclosure requirements and more risk warnings for investors.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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