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

 


MARKET CLOSE: NZ shares rise on election speculation

MARKET CLOSE: NZ shares rally on election speculation, MRP, Contact, Vector rise; Xero leads gainers

By Suze Metherell

April 23 (BusinessDesk) – New Zealand stocks rose as a front bench Labour Party MP quit, stoking speculation the incumbent National-led government will return for a third term. Contact Energy, Vector and MightyRiverPower gained. Xero led the advance.

The NZX 50 Index rose 37.983 points, or 0.7 percent, to 5142.922. Within the index, 30 stocks rose, 11 fell and nine were unchanged. Turnover was $104 million.

Labour MP Shane Jones, who ran for the party’s leadership last year, has quit politics to take up a Pacific economic ambassador post created for him by the National-led government, a move that may weaken Labour’s prospects in this year’s election. The opposition parties want to further regulate New Zealand’s energy market, which has spooked investors from the sector.

Contact climbed 2 percent to $5.69. Government-controlled MightyRiverPower, rose 0.9 percent to $2.26, while Auckland lines company Vector advanced 0.8 percent to $2.49. TrustPower lifted 1.5 percent to $6.65. Meridian Energy fell 0.4 percent to $1.185.

Outside the benchmark index, Genesis Energy, the last asset in the government’s partial-privatisation scheme to be publically listed, fell 1.1 percent to $1.81 on its third day of trading, after climbing 18 percent in its first two days of trading.

“Shane Jones’s resignation overnight may help the sector give it more flavour to a National-led government after the election,” said Craig Stent, an analyst with Harbour Asset Management “These stocks have been impacted over the last 12 months with the Labour-Greens proposal, so you might see a little bit of a re-rate in terms of these stocks, and obviously Genesis has gone well since its IPO.”

Xero climbed 3.2 percent to $32.30. The cloud-based accounting software maker’s stock has fallen 28 percent over the past month as investors across the world sold high growth and tech stocks amid fears the companies wouldn’t deliver on their high valuations.

“Xero is fairly volatile in terms of its trading range,” Stent said. “If you look at where it is trading at the moment, it is probably still one of the most expensive software-as-a-service models in the world.”

Pacific Edge, the Dunedin-based biotech company, slipped 0.9 percent to $1.12. Diligent Board Members Service, which makes a governance app, was unchanged at $4.60

Fletcher Building, New Zealand’s largest listed company, rose 1.5 percent to $9.74. Telecom advanced 0.4 percent to $2.635. Auckland International Airport climbed 1.5 percent to $4.03 while casino operator SkyCity Entertainment Group was up 1 percent to $4.03.

Harbour Asset’s Stent said recent “wobbles” in global growth had spurred some investors to more defensive stocks, such as listed property entities, on the prospect interest rates may stay lower for longer.

“Growth is still chugging along ok but it has been a bit patchy in parts, so you’re seeing investors searching out for companies that can deliver on earnings and dividends,” Stent said.

Property For Industry climbed 0.8 percent to $1.29. Argosy Property rose 0.6 percent to 91.5 cents. Kiwi Income Property Trust increased 0.4 percent to $1.14 while Goodman Property Trust was unchanged at 98.5 cents.

Warehouse, New Zealand’s largest listed retailer, rose 2.7 percent to $3.40. Brisbane-based jeweller Michael Hill International advanced 0.8 percent to $1.32, while online auction site Trade Me Group slipped 0.5 percent to $3.89. Kathmandu Holdings, the outdoor goods retailer, fell 0.3 percent to $3.69.

Outside the NZX 50 Hallenstein Glasson, the clothing chain, jumped 6.3 percent to $3.40, a three-month high.

(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