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

 


MARKET CLOSE NZ shares up, Genesis debut sparks energy rally

MARKET CLOSE NZ shares rise as Genesis debut sparks energy rally; Meridian, MRP, Contact gain

By Suze Metherell

April 17 (BusinessDesk) – New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains.

The NZX 50 Index rose 12.799 points, or about 0.3 percent, to 5103.348. Within the index, 22 stocks rose, 17 fell and 11 were unchanged. Turnover was $149.6 million, which excludes Genesis, which is not part of the index as yet.

Genesis climbed 17 percent to $1.81 from its listing price of $1.55, giving holders of the 49 percent that was sold an immediate gain of about $135 million. Over $143 million worth of shares traded hands in the IPO process, which attracted 68,000 retail investors, giving Genesis the third largest share register on the NZX in a largely scaled offer.

The float raised $733 million, bringing proceeds from the government’s partial privatisation programme to $4.7 billion.

Fellow state-controlled generator-retailer Meridian rose 1.7 percent to $1.175 while MightyRiverPower advanced 1.1 percent to $2.21. Contact, which was fully privatised in 1999, gained 1.5 percent to $5.58 while Infratil-controlled TrustPower climbed 1.2 percent to $6.53. Auckland lines company Vector increased 1.6 percent to $2.49.

“The final mixed ownership IPO has ended with a real bang for investors,” said James Smalley, director at Hamilton Hindin Greene. “ nA number of institutions saw the writing was on the wall with regards to demand for Genesis stock versus the amount of stock that was on offer and realised if you were underweight in that sector and expecting to correct your weightings with the Genesis IPO that wasn’t going to happen so we did see a bit of buying.”

Stock market operator NZX fell 0.8 percent to $1.24 as the government’s public listing of assets came to an end.

Tech stocks, hammered in recent days, showed some recovery. Diligent Board Member Services, the governance app maker, led the benchmark index higher, up 6.7 percent to $4.75. Pacific Edge, the biotech company, rose 1.7 percent to $1.17 and Xero, the cloud-based accounting software firm, gained 3.4 percent to $29.00.
conta
The tech stocks gained as the “market perceived that it was a little overdone on the downside regarding the well-publicised switch out of growth stocks into more defensive ones,” Smalley said. “As well as that, the sell-off overseas in those sectors has abated.”
diligXerio
Among tech stocks outside the benchmark index, GeoOp, the small business task management app maker, jumped 22 percent to $1.61, Wynyard Group, the software security firm, rose 1.7 percent to $2.44, and SLI Systems, the search engine developer was unchanged at $1.97.

Air New Zealand fell 0.2 percent to $2.07.The national carrier says claims against it as part of a class action lawsuit in Australia over alleged price fixing on freight have been withdrawn and the airline won’t be contributing to an A$38 million settlement by other airlines.

Fletcher Building, New Zealand’s largest listed company, fell 0.9 percent to $9.62. Telecom dropped 0.8 percent to $2.63.

Kathmandu Holdings, the outdoor goods retailer, rose 1.1 percent to $3.79. Warehouse Group, New Zealand’s largest listed retailer, advanced 0.6 percent to $3.26. Brisbane-based jeweller Michael Hill International was unchanged at $1.34 as was online auction site Trade Me Group at $3.94.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Real Estate: Housing Prices Head South In Most Of NZ

Housing became more affordable for first home buyers in many parts of the country including Auckland last month, as falling prices more than offset rising mortgage interest rates. More>>

ALSO:

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
  • Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news