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

 

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