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

 


MARKET CLOSE NZ shares rise; Kathmandu hits record

MARKET CLOSE NZ shares rise; Kathmandu hits record on sales, property trusts gain on Wheeler comments

By Suze Metherell

May 7 (BusinessDesk) - New Zealand stocks rose led by Kathmandu Holdings, which soared to a record after announcing strong sales. Argosy Property, Precinct Properties New Zealand and Kiwi Income Property Trust rose after a speech by the Reserve Bank governor cast doubt on the pace of interest rate rises.

The NZX 50 Index rose 14.229 points, or 0.3 percent, to 5189.126. Within the index, 26 stocks rose, 14 fell and 10 were unchanged. Turnover was $146 million.

Kathmandu jumped 8.7 percent to a record $4.00 after the outdoor goods retailer said it had strong sales over Easter with its third quarter sales up 3.6 percent to $93 million. The retailer expected full year sales to increase 5.5 percent to $405 million.

“They’ve shown over the last few years that despite the weaker retail sector in some ways they manage to buck the trend to do very, very well,” said Mark Lister, head of private wealth research at Craigs Investment Partners. “They’ve had a reasonably good start to the year and are confident of a strong performance.”

Reserve Bank governor Graeme Wheeler today said the bank may sell New Zealand dollars to drive down an “overvalued” currency which is keeping tradeables inflation at bay and may slow the pace of interest rate hikes.

Argosy Property rose 0.5 percent to 84.5 cents. Kiwi Income climbed 0.4 percent to $1.165. Precinct Properties, which responded to a please explain note on recent share activity from the NZX by confirming it remained compliant with listing rules, advanced 1 percent to $1.65 and Property For Industry gained 0.4 percent to $1.315.

“What the Reserve Bank governor said in a speech today was basically the currency is too high and if it stays too high it’ll make us rethink our view on interest rate rises,” Lister said “Property stocks might be responding to that comment as they’re high dividend payers and people buy them as a substitute for other sorts of high interest-bearing assets.”

Retirement village operators rose. Ryman Healthcare advanced 2.8 percent to $8.90. Metlifecare climbed 1.4 percent to $4.28 and Summerset Group Holdings gained 1.2 percent to $3.52.

Fletcher Building, New Zealand’s largest listed company, was the day’s worst performer, down 2.7 percent to $9.30. A Sydney-based Craigs’ analyst downgraded the stock from a ‘buy’ to a ‘hold’ while in a presentation released to the NZX the construction company alluded to on-going difficulties in its Australian market.

Xero, the cloud-based accounting software firm, fell 1.8 percent to $30.64. Diligent Board Member Services, the governance app developer, dropped 1.4 percent to $4.27. Pacific Edge, the Dunedin-based biotech company, rose 0.9 percent to $1.11.

Contact Energy advanced 1.8 percent to $5.70. Meridian Energy rose 0.8 percent to $1.20 and MightyRiverPower was unchanged at $2.28. Outside the benchmark index, Genesis Energy was unchanged at $1.845.

(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