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

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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