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

 

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

"Don’t Give Up":
End Of Kick-Start Hits KiwiSaver Enrolments

ANZ said new enrolments for the ANZ KiwiSaver Scheme had dropped by more than 50% since the Government announced an immediate end to the $1,000 KiwiSaver kick-start incentive in the Budget last month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news