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

 

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:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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