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

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news