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

 


MARKET CLOSE: NZ shares rise led by Meridian

MARKET CLOSE: NZ shares rise led by Meridian on political polls; Pacific Edge gains

By Suze Metherell

Sept. 5 (BusinessDesk) - New Zealand shares rose, led by Meridian Energy after political polls showed support for the incumbent National-led government ahead of this month's election. Pacific Edge advanced for a third day on news of its US patent.

The NZX 50 Index rose 25.319 points, or 0.5 percent, to 5253.868. Within the index, 29 stocks rose, 14 fell and seven were unchanged. Tunrover was $150 million.

Two political polls showed a firming in support for the National-led government returning for a third term led by Prime Minister John Key ahead of the general election on Sept. 20. Over the past three weeks an ongoing political scandal surrounding alleged 'dirty tricks' has distracted from the election, and seen the resignation of senior cabinet minister, Judith Collins. Energy stocks are the most prone to be sold ahead of any electoral uncertainty, as the opposition Green and Labour parties have promised to introduce a policy of KiwiPower, which includes a state-owned single electricity buyer in a bid to push down retail prices.

Electricity generators and retailers advanced on the pick up in the polls. Meridian Energy led the benchmark index higher, climbing 4 percent to $1.30. Genesis Energy advanced 2.2 percent to $1.84. MightyRiverPower increased 2.6 percent to $2.39. Contact Energy rose 2.2 percent to $5.57.

"Investors seem to be expecting a National victory with the way they've bought into gentailers," said James Smalley, director at Hamilton Hindin Greene. "It's purely off the back of those political polls that seem to indicate a strong likelihood of National getting re-elected, and with that the spectre of KiwiPower starting to recede a little bit."

Pacific Edge advanced, up 3.3 percent to 93 cents.The Dunedin-based biotech company is targeting the US market with its non-invasive bladder cancer test by securing healthcare provider trials, and announced it had secured a US patent for a skin cancer test today. Earlier in the year the stock touched a record of $1.76, before falling in a global sell-off of biotech and software stocks when investors questioned their high valuation to earnings ratio.

"They've come out with a couple of good announcements," Smalley said. "With these speculative stocks, where they're not generating any income now, it can be about momentum and perception - that perception has turned around and they've got a bit of upside momentum."

Spark New Zealand, formerly Telecom Corp, rose 1 percent to $3.07. Fletcher Building, New Zealand's largest listed company, rose 0.1 percent to $9.25.

A2 Milk Co rose 1.6 percent to 63 cents. ASX-listed Freedom Foods Group bought almost one million shares of A2 this week for about $589,000, and now has about a 17.9 percent stake in the milk marketer, after its stake was diluted in the past year due to the issue of partly-paid shares.

DNZ Property Fund, the country's sixth-biggest listed property investor by market value, rose 0.3 percent to $1.74. The company expects to pay a dividend of 9.5 cents per share in the 2015 financial year, up from 9 cents a year earlier, and expects that return to lift every year, chairman Tim Storey told shareholders in Auckland.

Outside the benchmark index, Horizon Energy was unchanged at $3.30 and has declined 1.5 percent this year. The Commerce Commission will cut the amount the lines company can earn in coming years by at least $727,934 as part of an out-of-court settlement after Horizon earned 3 percent more than its regulated pricing allows in 2012.

AWF Group jumped 6.9 percent to $2.65 after the contract labour firm said it anticipates first-half sales will grow almost 61 percent with the addition of white-collar recruitment firm Madison Group, and signalled bigger earnings as a result.

(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