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

 


MARKET CLOSE: NZ shares rise on Port of Tauranga deal

MARKET CLOSE: NZ shares rise on Port of Tauranga deal

By Jonathan Underhill

June 26 (BusinessDesk) - New Zealand shares gained as Port of Tauranga rose to its highest level this year after inking a deal with the Fonterra and Silver Fern Farms-led Kotahi logistics venture guaranteeing minimum volumes across its wharves. Hallenstein Glasson Holdings climbed after saying late yesterday it was holding its own in the face of unseasonal weather.

The NZX 50 Index rose 25.613 points, or 0.5 percent, to 5130.154. Within the index, 30 stocks rose, six fell and 14 were unchanged. Turnover was $92.9 million.

Port of Tauranga, the nation's busiest export port, rose 4.4 percent to $15 after the announcement that Kotahi members had agreed to push 1.8 million containers across its wharves in the next 10 years and send more cargo to its half-owned Timaru Container Terminal. To cement the deal, Kotahi will take a 1.5 percent stake in Port of Tauranga and a half share of the Timaru terminal.

"It seems like another very robust deal done by the port's management team," said Grant Williamson, a director at brokerage Hamilton Hindin Greene. To reach such a long-term accord was very unusual, the deal was earnings-positive almost immediately and meant more business for Timaru, he said.

Lyttelton Port Co, which competes with Timaru, was unchanged at $3.15 after announcing a 30-year reclamation plan that will create space for a new container terminal and may cost up to $1 billion.

Ryman Healthcare, the nation's biggest retirement village operator, was unchanged at $8.43 after announcing its second $100 million development in as many months, a site at Pukekohe south of Auckland. The stock has soared about 440 percent in the past five years.

"It shows their continued aggressive expansion," Williamson said.

Retailers were mixed. Kathmandu rose 1.6 percent to $3.28, rising for a second day after a slump sparked by a profit warning it attributed to unseasonal weather. Warehouse Group, which has also trimmed its guidance because its having to discount winter stock, was unchanged at $3.04.

Hallenstein climbed 4.1 percent to $3.05. The clothing retailer said this week that sales in February-June were about 2 percent above year-earlier levels, despite unfavourable weather, and it had inventory levels under control.

Contact Energy led gains among power companies, rising 2.1 percent to $5.32. Meridian Energy was up 1.2 percent to $1.23 and Genesis Energy climbed 1.7 percent to $1.80.

A2 Milk Co was the biggest decliner on the NZX 50, falling 2.8 percent to 69 cents. Diligent Board Members Services fell about 2 percent to $3.99.

Of the two companies that debuted on the NZX this week, online travel booking firm Serko rose about 4 percent to $1.05, still below the $1.10 IPO price, while Gentrack Group, which sells software for utilities and airports, gained 1.6 percent to $2.53.

Guinness Peat Group rose 0.8 percent to 67.5 cents with 8.2 million shares changing hands. Trade Me Group rose 1.2 percent to $3.49 as 3.3 million shares traded.

Foley Family Wines rose 6.5 percent to $1.65 after flagging that it intends to join the benchmark index after a placement. Milford Asset Management has emerged with a 9.3 percent stake.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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