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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


New Bill Introduced: GST On Online Services

These measures are an important first step in the Government’s efforts to deal with increasing volumes of online services and other intangibles purchased from overseas suppliers that should, under New Zealand’s tax rules, be subject to GST. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news