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

 


MARKET CLOSE: NZ shares rise on economic momentum

MARKET CLOSE: NZ shares rise on economic momentum, Telecom, Air New Zealand rise

By Suze Metherell

May 12 (BusinessDesk) – New Zealand shares rose on expectations forecasts in Thursday’s budget will add to confidence about the pace of economic growth. Air New Zealand and Telecom paced the advance.

The NZX 50 Index rose 9.754 points, or about 0.2 percent, to 5162.423. Within the index, 19 stocks rose, 17 fell and 14 were unchanged. Turnover was $125 million.

Air New Zealand led the market higher, gaining 3.3 percent to a six-and-a-half-year high of $2.20. Last November the government sold down 20 percent, reducing its stake in the national carrier to about 54 percent and boosting liquidity in the stock. Since then the shares have climbed about 40 percent, buoyed by strong earnings and its dominance in the domestic market.

“Since the government sold down some time ago the share price has continued to rise to levels not seen for a very long time,” said Grant Williamson, director at Hamilton Hindin Greene. “It’s quite a good story for investors, and given most airlines around the world are underperforming I think it’s a fair credit to Air New Zealand and does indicate the almost-monopoly they do have in the New Zealand domestic market.”

Telecom rose 0.6 percent to $2.64 and was the most-traded stock, with 12.8 million shares changing hands. New Zealand’s largest telecommunications provider is favoured by investors looking for exposure to New Zealand and for its 6.3 percent dividend yield, Williamson said.

“What has created buying in our market for quite some time now is our economic outlook,” Williamson said, who expected Thursday’s budget to confirm further growth in the economy.

Energy stocks were mixed. Contact Energy rose 0.4 percent to $5.50. Meridian Energy advanced 0.4 percent to $1.20.Vectoer, the Auckland lines company, was the day’s worst performer down 2 percent to $2.49 while MightyRiverPower slid 1.8 percent to $2.225.

Recent political polls have called into doubt the presumption the National-led government will return for a third term after September’s election. The main opposition parties, Labour and Greens, want to re-regulate the energy sector, creating a state-owned central buyer to push down consumer electricity bills.

“Investors in the electricity generators will really be waiting for the next lot of election poll results to determine how things are tracking. That sector is likely to remain volatile as we head into the election,” Williamson said.

Fletcher Building, New Zealand’s largest listed company, was unchanged at $9.32. Xero, the cloud-based accounting firm, climbed 1.4 percent to $30.62.

Infratil, the infrastructure investor, advanced 1.1 percent to $2.29 ahead of reporting its earnings tomorrow. Trustpower, which is majority owned by Infratil, was unchanged at $7.05. The electricity generator and retailer reported a drop in full year profit last week, as it chased growth in its Australian windfarms to offset a drop in New Zealand sales.

Ryman Healthcare fell 0.5 percent to $8.64. The retirement village operator is due to report earnings this week, which Williamson said are expected to be strong but are already priced in.

Auckland International Airport advanced 1 percent to $4.12 after New Zealand’s busiest gateway announced it plans to raise $150 million through a seven-year bond issue.

Units in Fonterra Shareholders’ Fund were unchanged at $6.00 after Fonterra Cooperative Group said the gap between cheese and milk powder prices had lessened, reducing pressure on its margins. The units give investors access to the dividend stream.

Skellerup Holdings, the industrial rubber maker, rose 0.6 percent to $1.71. A substantial shareholder’s notice showed Milford Asset Management had upped its holding in the stock to 9.6 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news