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

 


MARKET CLOSE: NZ shares rise as RBNZ hikes confirm growth

MARKET CLOSE: NZ shares rise as Reserve Bank hikes confirm growth

By Suze Metherell

June 12 (BusinessDesk) - New Zealand stocks rose after the Reserve Bank lifted the official cash rate, adding support to evidence for strong economic growth. Telecom, Air New Zealand and Trade Me Group paced the gain.

The NZX 50 Index advanced 15.961 points, or 0.3 percent, to 5195.11. Within the index, 21 stocks rose, 15 fell and 14 were unchanged. Turnover was $163.2 million.

Central bank governor Graeme Wheeler hiked the OCR a quarter-point to 3.25 percent, his third 25 basis points increase since he began his tightening cycle in March in a bid to fend off inflationary pressures. The currency gained as Wheeler showed no sign of slowing the pace of future rate hikes and deviating from his March projections.

"The big news today was the Reserve Bank," said Robert Garden, investment advisor for Craigs Investment Partners. "Ordinarily increasing interest rates aren't a positive for the market, but we're in early stages of the cycle and it does show proof that the economy is actually going steady and building momentum."

Telecom, the country's largest telecommunications provider rose 1.1 percent to $2.715. The stock is often seen as a proxy for the kiwi dollar as investors look for a place to park the currency, Garden said.

Air New Zealand, the national carrier, climbed 1.8 percent to $2.27. Trade Me Group, the online auction site, advanced 1.8 percent to $3.49. Xero, the cloud-based accounting software firm, gained 0.7 percent to $29.80.

New Zealand Oil & Gas led the benchmark index higher, up 5.2 percent to 81 cents.

Westpac Banking Corp was the worst performer of the day, down 2 percent to $37.50. Australian and New Zealand Banking Group fell 1.1 percent to $36.70.

Fletcher Building, New Zealand's largest listed company, dropped 0.4 percent to $9.08. Auckland International Airport fell 1.2 percent to $3.87.

Kathmandu Holdings, the outdoor good retailer, declined 0.6 percent to $3.45. Warehouse Group, New Zealand's largest listed retailer, slipped 0.9 percent to $3.36.

Outside the benchmark index, Wynyard Group rose 3.2 percent to $2.27 after the security software firm secured a three year contract with Australian gambling business Tatts Group.

Pyne Gould Corp fell 4.9 percent to 39 cents. Shares in the asset management firm controlled by South Island entrepreneur George Kerr were placed in a trading halt briefly after its Torchlight Fund No 1 LP was placed in receivership by a company associated with WorleyParsons chairman John Grill. PGG said the company was "an old shell" in dispute over residual payments on a loan.

Goodman Fielder was unchanged at 74 cents after the Australian food ingredients maker said it will spend $27 million to expand its Christchurch ultra heat treated milk plant, giving it additional capacity to meet increased demand for its Meadow Fresh brand in Asia.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

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>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news