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

 


NZ shares rise as investors optimistic on electricity market

NZ shares rise as investors optimistic electricity market will stay stable under National Govt

By Tina Morrison

March 28 (BusinessDesk) - New Zealand stocks advanced, led by electricity shares as investors anticipate the National Party may win this year’s election, boding well for the sector under threat of increased regulation and lower earnings should a Labour-Greens coalition gain power.

The NZX 50 Index rose 16.363 points, or 0.319 percent, to 5142.896. Within the index, 23 stocks rose, 20 fell and six were unchanged. Turnover was $112.6 million.

“The stand out would have to be the electricity generators today,” said Hamilton Hindin Greene director Grant Williamson, citing a new high for Meridian Energy instalment receipts of $1.17. “Confidence is quietly building in those stocks.”

Meridian Energy jumped 4.5 cents even though shareholders holding the stock today had no entitlement to the company’s 4.19 cent dividend to be paid on April 15 after the stock went ex-dividend yesterday.

“Shareholders will be extremely happy,” Williamson said. “That is turning into quite a good new listing for shareholders who have remained on board. “

Among other electricity stocks, Contact Energy rose 1.3 percent to $5.33, Vector increased 1.3 percent to $2.43, Infratil gained 0.7 percent to $2.275 and MightyRiverPower advanced 0.5 percent to $2.19.

The rise in electricity shares is surprising given a new energy stock is to join the market next month, Williamson said. The government will announce later today the price that it will sell Genesis Energy shares at ahead of its partial listing next month.

“It probably has come as a little bit of a surprise given that Genesis is now on the table,” Williamson said. “It certainly adds confidence to Genesis, the way the current listings are performing. “

Meanwhile, network company Chorus jumped 6.5 percent to a four-month high of $1.73, making it the best performer on the benchmark today. Investors gained more certainty around regulation after the Commerce Commission said it plans to determine a final price for what Chorus can charge users of its copper line services by Dec. 1.

“Investors are starting to see a recovery in what has been a pretty disappointing stock over the last 12 months,” Williamson said. Chorus shares have dropped 38 percent the past year.

Tech darling Xero declined, down 2.4 percent to $40 as investors realised some of their profits from the cloud-based accounting stock’s 264 percent gain over the past year.

“Having been such a great performing stock there was always the prospect that they would come under selling pressure at some stage,” Williamson said. “Investors are wanting to book in some pretty nice profits.”

Scott Technology, the industrial automation firm, dropped 3.2 percent to $1.50 after reporting a 63 percent slump in first-half profit as a strong New Zealand dollar eroded the company’s export earnings and stiff competition pushed down margins.

Units in the Fonterra Shareholders Fund slipped 1.3 percent to $6.01. Deutsche Bank said in a research report that it retains its ‘sell’ rating on the units, with a 12-month target price of $5.64. Deutsche Bank said Fonterra Cooperative Group needs to make it far clearer to farmers and other investors how its business model operates, after the dairy exporter shored up a slump in first half profits by intervening in the regulated price it pays for milk at the farm gate.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news