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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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