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

 

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news