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

 


MARKET CLOSE: NZ stocks rise in global rally

MARKET CLOSE: NZ stocks rise in global rally; Nuplex, Pacific Edge, A2 climb

By Suze Metherell

June 9 (BusinessDesk) - New Zealand stocks edged higher in a global rally as data showed signs of economic growth, while expansion in the domestic economy is likely to see the Reserve Bank hike the official cash rate for a third time this Thursday. Nuplex Industries, Pacific Edge and A2 Milk Company rose.

The NZX 50 Index rose 4.912 points, or 0.1 percent, to 5187.349 Within the index, 25 stocks gained, 11 fell and 14 were unchanged. Turnover was $111.6 million.

On Friday Wall Street benchmark indexes closed at a record high, as US unemployment remained steady at 6.3 percent and the country added a net 217,000 workers in May, the fourth straight month above 200,000. Stocks across Asia were further bolstered by data showing Japan's economy expanded at a 6.7 percent annualised pace in the first quarter, beating economists' 5.6 percent forecasts while China said exports rose 7 percent last month from a year earlier. Hong Kong's Hang Seng Index rose 0.7 percent in afternoon trading, while Japan's Nikkei 225 lifted 0.4 percent.

NZ Oil & Has rose 2.5 percent to 81.5 cents, leading the market higher. Pacific Edge gained 2.4 percent to 86 cents. Nuplex, the specialty chemical maker, rose 1.5 percent to $3.36 and A2 Milk advanced 1.3 percent to 78 cents.

On Thursday, central bank governor Graeme Wheeler will lift the OCR by a quarter point to 3.25 percent according to 16 of 17 economists in a Reuters' survey. The governor's commentary surrounding the pace of future hikes will be studied closely since the bank's March monetary policy statement figures have shown inflation accelerated at a lower-than-expected 0.3 percent in the first quarter, while there are signs heat in the housing market is dissipating at least partly in response to curbs on low-equity loans.

"It's really a double edged sword because interest rates going up is showing there is good growth in the economy, therefore companies' earnings should be improving but on the other side investors will start to favour leaving money in the banks, rather than put it into the share market because the banks are offering better rates to them," said Grant Williamson, director at Hamilton Hindin Greene. "Interest rates, on a historical basis, are still very low. I think it still favours the equities market."

Stock market operator NZX fell 0.8 percent to $1.33.

Telecom, the nation's biggest telecommunications provider, rose 0.6 percent to $2.715. The company, which is in the process of changing its name to Spark, announced Kevin Roberts, chief executive worldwide of Saatchi and Saatchi, has retired from the board after nearly six years and will be replaced by Yoobi co-founder Ido Leffler.

Units in Fonterra Shareholders' Fund rose 0.2 percent to $5.96. Fonterra Cooperative Group has tapped Robert Spurway to head up its global operations division in a newly created role as New Zealand’s dominant dairy exporter chases global ingredient sales to offset volatility in dairy prices. Units in the fund give investors access to the dairy exporter's dividend stream.

MightyRiverPower advanced 0.4 percent to $2.27. The government controlled power company's proposed issue of up to $300 million of July 2044 bonds has been rated BB+ and assessed as 'intermediate equity' by Standard & Poor's, meaning the ratings company will classify 50 percent of the interest paid as dividends.

Fletcher Building, New Zealand's largest listed company, slipped 0.4 percent to $9.15. Xero, the cloud-based accounting software firm, rose 0.03 percent to a near two-month low at $29.42.

Outside the benchmark index, Green Cross Healthcare fell 1.3 percent, or 2 cents, to $1.57 as the pharmacy chain and community health centre owner shed rights to its final 3.5 cents dividend.

Off the bourse, Hirepool, the equipment rental company controlled by Australian private equity firm Next Capital, has confirmed plans to go public with an initial public offering, said to be aimed at raising $250 million.

(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