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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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