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

 


MARKET CLOSE: NZ shares rise

MARKET CLOSE: NZ shares rise; MRP, Meridian and Vector gain ahead of Genesis IPO

By Suze Metherell

April 4 (BusinessDesk) – New Zealand stocks rose ahead of the Genesis Energy offer as investors sought to reweight their energy holdings in anticipation they won’t be allocated as many shares in Genesis as they had hoped. Meridian Energy, MightyRiverPower and Vector advanced.

The NZX 50 Index rose 1.529 points, or 0.03 percent, to 5123.901. Within the index stocks were mixed as 16 rose, 21 fell and 13 were unchanged. Turnover was $113.7 million.

Genesis, New Zealand’s largest electricity retailer by customer base, is the last on the block in the government’s partial privatisation programme which saw it sell minority holdings in Meridian and MightyRiverPower. Genesis stock may be in demand because of its high dividend yield, with 40 percent set aside for institutional investors, and the remaining 9 percent for retail.

Meridian rose 2.2 percent to $1.15. MightyRiverPower gained 0.5 percent to $2.17, while Auckland lines company Vector climbed 1.2 percent to $2.50. Contact Energy declined 0.9 percent to $5.30.

Some investors “have had to get their weight up by buying some of the existing energy stocks on the market,” said James Smalley, a broker at Hamilton Hindin Greene. “They’d been deliberately underweight anticipating to get proper weighting through Genesis but with the price and interest in Genesis a number of funds won’t get anything near what they’re after.

“If we are seeing some selling in our local market it’s due to people raising funds on the retail side for the Genesis IPO,” Smalley said.

Xero snapped a seven day decline to advance 1.6 percent to $37.80 after the cloud-based accounting software firm said its annual subscription revenue rose 84 percent. The Wellington-based company widened its full year loss to $35 million as it hired more staff to fuel growth.

“Long term investors would be very happy to see that announcement come out, and see that the growth is still there,” Smalley said.

Fletcher Building, New Zealand’s largest listed company, rose 0.7 percent to $9.59. Sky Network Television rose 1.8 percent to $6.35, while casino operator SkyCity Entertainment Group advanced 1.8 percent to $3.90.

Pacific Edge, the makers of the non-invasive bladder cancer detection test, led the benchmark index higher, up 2.3 percent to $1.33.

Units in the Fonterra Shareholders’ Fund, which give investors access to the cooperative’s dividend stream, declined 1.4 percent to $6.20. The world’s largest dairy exporter was fined $300,000 by Wellington District Court for breaches in the Animal Products Act after last year’s botulism scare lead to a global recall.

Auckland International Airport rose 0.9 percent to $3.95. Telecom slipped 0.2 percent at $2.53.

Ebos Group, the healthcare and animal care products company, was the worst performer down 4.7 percent to $9.44. Fisher & Paykel Healthcare, the breathing apparatus manufacturer and exporter, fell 1.9 percent to $4.13. Trade Me Group, the online auction website, slipped 2.7 percent to $4.01.

Outside the benchmark index, Moa Group soared 21 percent to 64 cents. The Auckland-based beer maker said it sold 3.67 million bottles in the year ended March, after cutting its sales target last year.

(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