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

 


MARKET CLOSE: NZ shares rise; Telecom at month high

MARKET CLOSE: NZ shares rise; Telecom at month high

By Suze Metherell

July 14 (BusinessDesk) - New Zealand stocks rose from a three-month low as investors sought out defensive options ahead of next month's reporting season and September's general election. Telecom Corp paced gains to rise to a month high. Contact Energy, Genesis Energy and Meridian Energy rose.

The NZX 50 Index rose 27.273 points, or 0.5 percent, to 5127.865. Within the index, 31 stocks rose, 10 fell and nine were unchanged. Turnover was $99.5 million.

The benchmark index has advanced 8 percent this year, outperforming Australia's S&P/ASX 200 Index's 3 percent gain, while Japan's Nikkei 225 Index has declined 6.1 percent. In the past month investors have mulled the high valuations of New Zealand stocks, with the NZX 50 falling 1.2 percent.

"Really there is a bit of question mark over some of these valuations and it's going to be the reporting season that's going to pretty much give us some evidence one way or the other," said Grant Williamson, director at Hamilton Hindin Greene. "I think it will be a mixed bag - we will see some companies perform better than expected and some likely to be under the market expectation, but also with the general election we're not going to see any strong buying coming into this market until we've had that uncertainty removed."

Telecom rose 1.3 percent to $2.75. New Zealand's largest telecommunications provider has gained 19 percent this year.

"Investors are just continuing to look at Telecom as a good defensive play," Williamson said.

Energy companies rose as investors weighed the likelihood of the incumbent National-led government returning for a third term. Opposition parties have promised to restructure New Zealand's energy market, creating a central buying agency to push down retail energy prices which has weighed on the government's partial privatisation of the power companies.

Contact rose 1.7 percent to $5.44. Genesis gained 0.6 percent to $1.81. MightyRiverPower advanced 0.2 percent to $2.27. Vector, the Auckland lines company, increased 0.8 percent to $2.55

Meridian climbed 1.2 percent to $1.245, after the electricity retailer and generator said record warm temperatures had driven a three percent drop off in electricity demand in June compared to last year, while it also recorded a 1.8 percent decrease in average retail contracted sales price in the year ended June 2014.

Trade Me Group, the online auction site, rose 0.6 percent to $3.55 on news potential competitor Wheedle will close after investor Neil Graham invested more than $10 million in the company, Williamson said.

Kathmandu Holdings, the outdoor goods retailer, led the benchmark index higher, up 2.5 percent to a two-week high of $3.32. Fisher & Paykel Healthcare rose 0.7 percent to $4.66.

Fletcher Building, New Zealand's biggest listed company, rose 0.3 percent to $8.88. Xero, the cloud-based accounting software firm, advanced 2 percent to $25.25.

Of the day's few decliners, OceanaGold was the worst performer on the benchmark index, down 1.4 percent to $3.59.

Infratil fell 1.2 percent to $2.45. The infrastructure investor said it will make a final decision on the future of its Australian energy assets in September.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news