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

 


MARKET CLOSE: NZX 50 reaches record on ‘safe-haven’ appeal

MARKET CLOSE: NZX 50 reaches new record on ‘safe-haven’ appeal; MRP, Contact gain

By Suze Metherell

March 19 (BusinessDesk) – New Zealand’s NZX 50 Index rose to a record as economic growth, the prospect of political stability and distance from geo-political tensions in Europe lured investors. MightyRiverPower, Meridian Energy and Contact Energy rose.

The NZX 50 rose 19.051 points, or about 0.4 percent, to a record 5154.715. Within the index, 26 stocks rose, 15 fell and nine were unchanged. Turnover was $135 million.

Russia cemented its claim to Ukraine’s breakaway peninsula Crimea as Western countries warned of sanctions, stoking concern regional tensions may rise. Meanwhile the NZ Herald’s DigiPoll survey projected a third term for the governing National Party as the domestic economy picks up pace.

Contact climbed 2.1 percent to $5.36. Government-controlled MightyRiverPower advanced 1.5 percent to $2.10, while Meridian rose 1.4 percent to $1.11.

“New Zealand is viewed as a safe haven - obviously the economic conditions are pretty supportive here at the moment with GDP going to be over 4 percent this year,” said Craig Stent, an analyst with Harbour Asset Management. “The polls that came out yesterday indicating potentially that National might be able to govern alone or with a coalition partners again is why you’ve seen a bounce back in the utility stocks.”

A key election policy of the opposition parties, Labour and the Greens, is to regulate the electricity market, creating a single state-owned wholesale electricity buyer, which would force down prices.

Online auction website Trade Me Group led the index higher, up 2.7 percent to $3.83. Fonterra Shareholders’ Fund, which gives investors access to Fonterra Cooperative Group’s dividend stream, gained 2.5 percent to $6.10. Brisbane-based jeweller Michael Hill International climbed 2.2 percent to $1.40.

Telecom was the day’s worst performer, dropping 3.8 percent to $2.42. New Zealand’s largest telecommunications provider shed rights to its interim dividend today.

Diligent Board Member Services declined 2 percent to $4.36. The company, which had to restate several years of financial statements after recognising revenue too early, said it will miss the March 31 deadline to file its annual report.

Xero, cloud-based accounting software firm, rose 1.9 percent to $44.45. Fletcher Building, New Zealand’s largest listed company was unchanged at $9.74. Auckland International Airport declined 1.3 percent to $3.90.

Outdoor goods retailer Kathmandu Holdings fell 2 percent to $3.38, Warehouse Group, New Zealand’s largest listed retailer was unchanged at $3.26. Clothing chain Hallenstein Glassons lifted 0.3 percent to $3.08.

Outside the benchmark index, children’s clothing retailer Pumpkin Patch plunged 19 percent to a record low of 55 cents. The retailer reported a 98 percent decline in first-half earnings as declining sales in its largest market Australia were further impacted by a strong kiwi. It warned of continuing currency headwinds in its second-half.

(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
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news