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

 


MARKET CLOSE: NZ shares rise, Fletcher, Steel and Tube gain

MARKET CLOSE: NZ shares rise, Fletcher, Steel and Tube gain on investors seeking recovery exposure

By Suze Metherell

March 27 (BusinessDesk) – New Zealand stocks rose as investors sought exposure to New Zealand’s economic growth, fuelled by a record high trade surplus for February and strong business confidence. Port of Tauranga, Fletcher Building and Steel & Tube paced the day’s gainers.

The NZX 50 Index rose 1.645 points, or 0.03 percent, to 5126.533. Within the index, 22 stocks rose, 20 fell and eight were unchanged. Turnover was $115.9 million.

Fletcher, New Zealand’s largest listed company, rose 1.6 percent to $9.57. Steel & Tube climbed 1.4 percent to $3.00 and Port of Tauranga, New Zealand’s largest export port, rose 0.8 percent, to close at $14.16.

“Anything that seems to be a wee bit exposed to the building cycle, Steel & Tube and Fletcher Building, is performing well,” said Chris Timms, investment advisor with Craigs Investment Partners. “All the blue chips stocks are up.”

However, Xero fell 5.6 percent to $41, a three week low. The cloud-based accounting software company has climbed 270 percent in the past 12 months. A2 Corp, which has gained 57 percent in the past year, slid 1.1 percent to 92 cents. Outside the benchmark index, Wynyard Group slipped 1.6 percent to $3.00. The security software firm has gained more than 170 percent since it listed last July.

“The growth stocks have had good runs, people have looked at the short term profit off them, and if there is a bit of weakness offshore they’ve thought, well maybe I better lock in some profit here,” Timms said.
pacific
Freightways led the day’s gainers up 2.6 percent to $4.82. Brisbane-based jeweller Michael Hill International climbed 2.2 percent to $1.37 and Telecom rose 1.3 percent to $2.425.

Pacific Edge, the non-invasive bladder cancer test developer, fell 4.1 percent to $1.41. Two directors and the chief executive sold down their holdings this month, according to NZX data.

“Pacific Edge seems to be driven by the fact that people are a bit worried that some of the directors and key shareholders have been taking the opportunity to reduce their stakes,” Timms said. “There would be people looking at the company and asking, ‘why are these guys selling?’”

Meridian Energy instalment receipts closed at $1.125 after shedding rights to its 4.19 cents per share interim dividend. MightyRiverPower was unchanged at $2.180 and Contact Energy rose 0.6 percent to $5.26.

Outside the benchmark index, Methven fell 4.7 percent to $1.23 after the tap-maker and distributor cut its full-year earnings guidance for a second time, saying soft trading conditions it flagged in January have continued for longer than expected.

Synlait Milk also shed 7 percent to $3.71 after downgrading full year net profit forecasts by some $5 million to between $25 million and $30 million because of the strong New Zealand dollar and the fallout from Fonterra’s whey protein contamination scare, which impacted on the Chinese infant formula market, where Synlait is targeting new brands.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Interest Rates: NZ Dollar Jumps After RBNZ Trims OCR

The New Zealand dollar jumped more than half a US cent after Reserve Bank governor Graeme Wheeler cut the official cash rate by a quarter-point and said the currency needs to be lower, while dropping a reference to criteria that justified intervention. More>>

ALSO:

Drones: New 'World-Class' Framework For UAVs

The rules, which come into effect on 1 August, recognise the changing environment and create a world-class framework that accommodates ongoing development while still ensuring the safety of the public, property and other airspace users. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news