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

 


MARKET CLOSE: NZ shares gain on global rally; Diligent rises

MARKET CLOSE: NZ shares gain on global rally; Diligent, Pacific Edge lead gains

By Suze Metherell

April 16 (BusinessDesk) - New Zealand stocks joined a global rally as US company earnings growth lifted sentiment for equity markets. Diligent Board Member Services led the benchmark index higher after reporting first-quarter sales growth. Pacific Edge and Skellerup Holdings paced gains.

The NZX 50 Index rose 14.264 points, or about 0.3 percent, to 5090.549. Within the index, 27 stocks rose, nine fell and 14 were unchanged. Turnover was $117.5 million.

Wall Street rose for a second day after Coca Cola Co posted 2 percent growth in global sales, while the world’s biggest health-care products maker, Johnson & Johnson, said first quarter profit rose 34 percent. Signs of corporate earnings growth helped extend a rally into Asia, where Japan’s Nikkei 225 Index rose 2.5 percent, Australia’s S&P/ASX 200 advanced 0.6 percent and Hong Kong’s Hang Send lifted 0.3 percent.

Diligent climbed 9.9 percent to $4.45 after the governance app maker posted quarterly figures which showed better growth didn’t slow as much as feared in the US market.

Pacific Edge, the Dunedin-based biotech company, rose 7.5 percent to $1.15 while Skellerup, the industrial rubber goods maker, advanced 2.9 percent to $1.75.

The Coca Cola and Johnson & Johnson results are “flowing through and restoring confidence” in equities, said Robert Garden, investment adviser at Craigs Investment Partners. “Investors are really wanting fundamental figures to come through from individual stocks and economic reports from various places around the globe to justify where share prices have run too.”

New Zealand tech stocks were caught up in a global sell off over the past month as investors questioned the ability of companies to deliver the profits implied in their high valuations. Big movements in the tech-heavy Nasdaq Composite Index on Wall Street have echoed through the local stock market.

Xero, the cloud-based accounting software firm, fell for the fifth consecutive day, down 1.4 percent to $2.45.

“Out of all of the tech stocks, Xero is the one that’s struggling to have a bit of a bounce,” Garden said. “In terms of valuation it may have the most to come off.”

“The difficult part is putting the correct valuation on them,” he said, referring to the tech sector.

Tech stocks outside the benchmark index rose. SLI Systems, the search engine developer, advanced 3.1 percent to $1.97. Security software firm Wynyard Group climbed 3 percent to $2.40 while GeoOp, the small business task management app maker, gained 4.8 percent to $1.32.

Energy stocks were mixed before Genesis Energy, the last company in the government’s partial privatisation programme, begins trading on the NZX tomorrow. The sale was scaled back, meaning investors didn’t get all the stock they were after.

MightyRiverPower advanced 1.2 percent to $2.185. Contact Energy climbed 0.6 percent to $5.50, while Meridian Energy fell 0.4 percent to $1.155. Auckland lines company Vector fell 1.2 percent to $2.45.

“The market is looking forward to Genesis tomorrow, including myself,” Garden said. “There may be some that are frustrated with what they’ve got and make the decision they’re going to top up or exit if the price opens up at attractive levels.”

Telecom slipped 0.6 percent to $2.65. Fletcher Building, New Zealand’s largest listed company, rose1.2 percent to $9.71 and Auckland International Airport advanced 0.3 percent to $3.94.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news