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

 


MARKET CLOSE: NZ shares rise in global surge; Diligent gains

MARKET CLOSE: NZ shares rise in global surge; Diligent, Sky TV, Meridian climb

By Suze Metherell

June 19 (BusinessDesk) - New Zealand stocks advanced in a global rally after the Federal Reserve forecast lower interest rates, while government figures showed the local economy continues to grow. Diligent Board Member Services paced gains ahead reporting first-quarter sales. Sky Network Television and Meridian Energy rose.

The NZX 50 Index rose 7.692 points, or 0.1 percent, to 5192.154. Within the index, 27 shares rose, 12 fell and 11 were unchanged. Turnover was $184 million.

New Zealand's gross domestic product grew 3.3 percent rate in the year ended March 31, supporting the central bank’s view that it must press on with interest rate increases to keep inflation at bay. Meantime, the US Fed lowered its forecast for US economic growth in 2014 to between 2.1 percent and 2.3 percent, from 2.8 percent to 3 percent, and cut its projections for long-term interest rates by about 25 basis points. Lower interest rates support the stock market as investors look for better returns.

Stocks across the Asia-Pacific gained, with Japan's Nikkei 225 Index up 1.5 percent in afternoon trading, Australia's S&P/ASX 200 rose 1.5 percent and Hong Kong's Hang Seng climbed 0.3 percent.

"The Fed's comments were broadly supportive for the market, with interest rates staying lower for longer and we had pretty strong GDP stats come out of New Zealand," said Shane Solly, director at Harbour Asset Management. "The grinding nature of the market is continuing up."

Diligent advanced 1.6 percent to a near six-week high of $4.57. Harbour's Solly said investors are preparing for the governance app maker's first-quarter sales tomorrow, the first since restating its financial statements for 2010, 2011 and 2012 after acknowledging it recognised revenue too early under US GAAP accounting rules. The company has set up new internal controls to avoid a repeat.

OceanaGold led the index higher, gaining 4 percent to $3.39.

Sky TV rose 1.2 percent to $6.87. Yesterday the pay TV provider said it will launch a subscription video on demand service by the end of the year in a challenge to Telecom's own offering as well as ASX-listed Quickflix, Ezyflix. Telecom slipped 0.2 percent to $2.70.

Harbour's Solly said ongoing political scrutiny for the leader of the Opposition Labour Party, David Cunliffe, ahead of September's general election is reducing the "regulatory threat" to energy companies.

Meridian advanced 1.3 to $1.215. MightyRiverPower rose 0.5 percent to $2.245 and Trustpower climbed 0.7 percent to $7.10. Auckland lines company Vector increased 0.4 percent to $2.56.

Infratil rose 0.4 percent to $2.435 after the infrastructure investor said it has provided interested parties with a confidential information memorandum on its Infratil Energy Australia (IEA) business and expects indicative offers for the assets by mid-July.

Outside the benchmark index, Lyttelton Port Co was unchanged at $3.13. Repairs at Christchurch’s ocean trade hub, which was damaged in the 2010 and 2011 Canterbury earthquakes, are to be fast-tracked by Canterbury earthquake recovery minister Gerry Brownlee. The stock is tightly held with Christchurch City Holdings, the investment arm of the council, owning about 80 percent of the company, while Port Otago holds 15 percent.

PGG Wrightson was unchanged at 41.5 cents. The rural services company increased guidance for full year operating earnings to between $56 million and $58 million range, from the $52 million and $56 million range given in February.

SeaDragon was unchanged at 1.9 cents after the manufacturer of fish oil for health supplements said it expects to more than double annual sales as two squalene contracts worth US$6 million boost revenue are recognised in the second half and first half of next year. The Nelson-based refiner reported annual sales of $3.1 million for the year ended March 31, with a profit of $431,000.

On the New Zealand Alternative Index Foley Family Wines was unchanged at $1.45. The wine maker, which is majority owned by American businessman and vineyard owner Bill Foley, has met the last of its conditions for its all scrip takeover of Martinborough Vineyard Estates, crossing the 90 percent threshold required to mop up the remaining shares.

Chatham Rock Phosphate plunged 20 percent to 20 cents. The company is waiting for approval from the Environmental Protection Agency to mine phosphate nodules on the Chatham Rise, in New Zealand's Exclusive Economic Zone. Earlier this week the EPA rejected Trans Tasman Resources bid to mine ironsands from the ocean floor off the coast of southern Taranaki.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

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:

Get More From Scoop

 
 
Standards New Zealand

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