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

 


MARKET CLOSE: NZX 50 soars to record; Xero, power coys gain

MARKET CLOSE: NZX 50 soars to record; Xero, power companies gain

By Suze Metherell

April 30 (BusinessDesk) – The NZX 50 Index climbed to a record as a new US partner for Xero saw investors return to the sold-off stock, while high-yield power companies MightyRiverPower, Contact Energy, Meridian Energy and Genesis Energy paced gains.

The benchmark index rose 84.385 points, or 1.6 percent, to 5232.676 points. Within the index, 38 stocks rose, five fell and seven were unchanged. Turnover was $279 million. The NZX 50 climbed 1.3 percent this month, and about 10 percent in the year.

Xero, the cloud-based accounting software company chasing growth, secured a partnership with H&R Block in the US and slowed cash burn for the first three months of this year luring back investors. The company was caught in a global tech sell-off, sliding 20 percent over the past month, as investors questioned the valuations of high-growth companies. The shares rose 5.5 percent to $31.65.

“Probably slightly better than we were expecting in terms of cash burn, down $2.5 million from the previous quarter, but I think it’s more to do with the strategic partner H&R Block,” said David Price, a Forsyth Barr broker. “It’s a matter of seeing whether they can convert these alliances into dollars.”

State-controlled energy company Meridian rose 2.5 percent to $1.23, while fellow government-controlled MRP climbed 1.5 percent to $2.325, an eight-and-a-half month high. Contact advanced 1.4 percent to $5.69. Auckland lines company Vector increased 2 percent to $2.56.

Outside the benchmark index Genesis rose for the fourth consecutive day up 0.5 percent to $1.90.

“You’ve seen a lot of electricity generators have a pretty strong rally as of late, and that is a refocus on the yield that they do offer,” said Price. “People are looking at what the comparative out there is for them and they do look relatively attractive.”

Telecom advanced 1.8 percent to $2.77. Auckland International Airport climbed 2.1 percent to $3.97. Air New Zealand rose 1.2 percent to $2.10. Fletcher Building was unchanged at $9.85.

OceanaGold led gainers rising 11 percent to $2.93. The Melbourne-based copper and gold miner reported a 730 percent boost in first quarter earnings as its Philippines’ operation came online.

Diligent Board Member Services rose 5.3 percent to $4.54 after the governance app maker reported its 2013 annual report having restated financials for the last three years due to an accounting error.

New Zealand Oil & Gas rose 1.3 percent to 77.5 cents. The Wellington-based oil and gas exploration firm said it was cautiously optimistic about oil exploration at Pateke, part of the Tui oil field of which it has a 28 percent stake in.

Among the day’s decliners, Guinness Peat Group fell 0.7 percent to 68 cents. Insurer Tower slipped 0.6 percent while units in the Fonterra Shareholders’ Fund declined 0.2 percent to $6.14.

The dual-listed Australian banks slipped, with Westpac Banking Corp down 0.5 percent to $38.20 and Australia and New Zealand Banking Group fell 0.3 percent to $37.39.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news