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

 


MARKET CLOSE: NZ stocks join global rally, led by Telecom

MARKET CLOSE: NZ stocks join global rally; Telecom, Fonterra rise

By Suze Metherell

April 3 (BusinessDesk) – New Zealand shares snapped a three day decline, joining a global rally on positive US US job data and factory orders. Telecom led the benchmark index higher as international investors sought exposure to the kiwi market, while units in Fonterra Shareholders’ Fund rose on lower input prices.

The NZX 50 Index rose 6.064 points, or 0.1 percent, to 5122.372. Within the index, 23 stocks rose, 20 fell and seven were unchanged. Turnover was $176.7 million.

Asian markets followed Wall Street higher after solid US economic data fuelled optimism over the recovery in the world’s biggest economy. Australia’s S&P/ASX 200 was up 0.2 percent in afternoon trading. Japan’s Nikkei 225 Index climbed 1.3 percent and Hong Kong’s Hang Seng rose 0.4 percent.

“We’ve seen a bit of a rebound over the last several days from some of the offshore markets, the S&P 500 in the US last night had a new record high so most markets over the world have followed suit,” said Mark Lister, head of private wealth research at Craigs Investment Partners. “New Zealand has responded a little more modestly and I think that’s because we’ve had such a strong performance right through the year that we’re have held up better so there has been less of a bounce back.”

Telecom led the benchmark index higher, climbing 3.3 percent to $2.535. The telecommunications retailer has a gross dividend yield of 6.5 percent, something Lister said is attractive and popular with international investors as its relative liquidity gives them easy exposure to the New Zealand market.

Units in Fonterra Shareholders’ Fund rose 2.3 percent to $6.29 after global dairy product prices had the biggest drop in almost 20 months yesterday lowering input costs for Fonterra Cooperative Group. The units give investors access to Fonterra’s dividend stream.

“If there is a little bit of pressure on that dairy payout then their costs of production fall a little bit and the shares are responding,” Lister said.

A2 Corp, the milk marketing company, fell 1.1 percent to 88 cents. Outside the benchmark index, Synlait Milk rose 0.8 percent to $3.70.

Skellerup Holdings, the industrial rubber goods manufacturer which supplies the agricultural sector, fell 1.1 percent to $1.74.

“If you did see a bit of heat come out of the dairy sector and that payout potentially fall then all of those farmers out there would obviously be spending less money on their suppliers, of which Skellerup is one,” Lister said.

Xero extended its decline, falling 2.1 percent to $37.20. The cloud-based accounting software firm has dropped 9.3 percent this week as brokers have reduced their growth forecast for the company and international tech stocks have come under pressure, Lister said.

“There have been a couple of brokers that have reduced their growth forecasts for Xero,” Lister said. “It’s just another one of those market darlings that had a very strong share price and hasn’t necessarily got the underlying profit to justify it in a lot of ways, and I think you’re just seeing a bit of weakness in the global technology space.”

Auckland International Airport rose 0.4 percent to $3.88. New Zealand’s busiest gateway raised $150 million in a wholesale bond issue and is mulling a retail offer to help fund its capital return to shareholders.

Fletcher Building, New Zealand’s biggest listed company, climbed 0.6 percent to $9.52 and Air New Zealand advanced 1.5 percent to $2.03.

Z Energy fell 1.3 percent to $3.89 after the transport fuel supplier said it’s targeting an increase of up to $50 million in annual operating earnings by 2018.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news