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

 


MARKET CLOSE: NZ shares rise, paced by Tower, Meridian

MARKET CLOSE: NZ shares rise, paced by Tower, Meridian as IPOs loom

By Jonathan Underhill

July 3 (BusinessDesk) - New Zealand shares rose, paced by Tower, Meridian Energy and Diligent Board Member Services as institutions turned their attention to offers of shares from Metro Performance Glass and Scales Corp, seeking to raise up to a combined $460 million.

The NZX 50 Index rose 5167.394 points, or 0.4 percent, to 5167.394. Within the index, 29 stocks rose, 16 fell and five were unchanged. Turnover was $102 million.

Metroglass and Scales have pushed on with their bookbuilds in the shadow of Hirepool, which withdrew from the market after failing to win over institutional investors. They join ERoad and IkeGPS among companies aiming for a listing.

Tower rose 1.4 percent to $1.84, the highest close in more than seven months, having announced on July 1 the sale of its remaining life insurance business for $36 million, leaving the company as a pure-play general insurer.

"Tower has continued to rise following the sale of the life insurance business," said Matthew Goodson, who helps manage $650 million at Salt Funds Management. "There's potential for future capital management."

Meridian, the largest power company by market value, rose 1.2 percent to $1.265, having touched a record $1.27 in intraday trading.

"With low interest rates everywhere there's a real reach for yield," Goodson said.

Fletcher Building, the biggest company on the benchmark index, rose 0.9 percent to $8.85. Mainfreight, the global logistics and transport company, gained 2.2 percent to $14.40.

Of recently listed companies, Serko was unchanged at $1.02, below its $1.10 IPO price, and Gentrack Group held above its IPO price, rising 0.8 percent to $2.67.

Ryman Healthcare rose 0.2 percent to $8.55 after the country's biggest listed retirement village operator and developer bought a new Wellington site where it plans to build a boutique village. Rivals Metlifecare increased 0.2 percent to $4.54, and Summerset Group fell 0.6 percent to $3.40.

Units in the Fonterra Shareholders' Fund, which gives investors exposure to Fonterra Cooperative Group's dividends, were unchanged at $5.74 after dairy prices yesterday fell for a ninth time in the last 10 auctions, prompting ANZ economists to downgrade their forecast for the 2015 payout to farmers. A2 Milk Co gained 1.5 percent to 70 cents, and Synlait Milk declined 0.9 percent to $3.33.

Tourism Holdings added to yesterday's gain, rising 0.8 percent to $1.20 after it said yesterday it may beat annual earnings guidance.

Telecom Corp gained 0.6 percent to $2.70.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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