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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news