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

 


MARKET CLOSE: NZ shares fall; investors eye Genesis IPO

MARKET CLOSE: NZ shares fall as investors make room for Genesis, shed property

By Suze Metherell

March 26 (BusinessDesk) – New Zealand shares fell as investors made room in their portfolios ahead of the government’s Genesis Energy initial public offer next month. Property stocks paced the fall as rising interest rates made the sector’s yield less attractive.

The NZX 50 Index fell 5.807 points, or 0.1 percent, to 5124.888. Within the index 24 stocks fell, 18 rose and eight were unchanged. Turnover was $137.3 million.

Investors sold shares to make room in their portfolios for the next partial privatisation, of which 40 percent has been set aside for institutional investors and local broking firms. The government today said it will sell the maximum 49 per cent of Genesis Energy after feedback from institutions gave it confidence it didn't need to reduce the size of the sell-down.

“There is a little bit of weakness in the market today and it comes from investors raising funds for Genesis, but they’re certainly not doing it from energy stocks, if anything those are going the other way,” said James Smalley, a director at Hamilton Hindin Greene. “The recent IPO stocks, MightyRiver and Meridian, have come in for the buying because perhaps investors or institutions were a little bit underweight in those stocks pending Genesis.”

Energy stocks rose, with Meridian Energy leading gainers, up 2.2 percent to a record $1.14. MightyRiverPower climbed 1.6 percent to $2.18, while lines company Vector rose 0.4 percent to $2.42, and Contact Energy declined 1.1 percent to $5.23.

Property stocks paced the day’s decline with the Reserve Bank’s move to higher interest rates detracting from the appeal of the stocks, which typically deliver a high dividend yield.

Goodman Property Trust fell 1.6 percent to 95.5 cents. Property for Industry dropped 1.2 percent to $1.27. Precinct Properties declined 1 percent to $1.005 as did DNZ Property Fund to $1.52. Kiwi Income Property slipped 0.9 percent to $1.12 and Argosy Property fell 1.1 percent to 95 cents.

“Property stocks are normally the ones most affected by rising interest rates because the relative attractiveness of the yield drops,” Hamilton Hindin Greene’s Smalley said.

Units in the Fonterra Shareholders’ Fund fell 1.1 percent to $6.50 after Fonterra Cooperative Group reported a 53 percent drop in first-half earnings on shrinking margins. The units give investors exposure to the dairy exporter’s dividend.

Fletcher Building, New Zealand’s largest listed company, declined 2 percent, or 19 cents, to $9.42 after shedding rights to its 18 cents per share interim dividend.

Sky Network Television led the benchmark index lower, dropping 3.4 percent to $6.27. Xero, the cloud-based accounting software company, fell 1.3 percent to $43.45.

Auckland International Airport rose 0.3 percent to $3.87. Telecom advanced 0.2 percent to $2.395 and SkyCity Entertainment Group gained 0.3 percent to $3.89.

(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