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

 

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news