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


MARKET CLOSE: Shares slip as appetite for yield stocks dim

MARKET CLOSE: NZ shares slip as appetite for yield stocks dims; Chorus, Genesis decline

By Paul McBeth

Dec. 27 (BusinessDesk) - New Zealand shares slipped in thin holiday trading as appetite for companies offering attractive dividend yields, such as regulated utilities Chorus and Genesis Energy and pay-TV operator Sky Network Television declined.

The S&P/NZX 50 index decreased 20 points, or 0.2 percent, to 8,374.43. Within the index, 25 stocks fell, 16 gained, and nine were unchanged. Turnover was a lighter-than-normal $65.8 million.

Electricity generator-retailer Genesis Energy led the benchmark index lower, falling 2.7 percent to $2.46. Telecommunications network operator Chorus dropped 2.6 percent to $4.16, power company Mercury NZ fell 2.2 percent to $3.355 and Sky TV declined 2.1 percent to $2.78.

"Some of the interest rate sensitive stocks, such as Chorus, Mercury and Sky, are down - they're the ones dragging the market down into the close," said Shane Solly, portfolio manager at Harbour Asset Management. "What we've seen globally, led out of the US, is long-term bond yields creep up slightly from being very low, and we're seeing people think about what will happen in the next 12 months."

Still, he said trading was very light due to the Christmas/New Year holiday period.

Kiwi Property Group posted the biggest gain on the day, up 2.5 percent to $2.145, followed by retirement village operator Summerset Group which rose 2.2 percent to $5.50.

Tourism Holdings advanced 2.1 percent to $5.77. The rental campervan operator last week said it expects net profit to get a boost from US tax cuts.

Fast food operator Restaurant Brands New Zealand gained 1.4 percent to $7.15. Paymark figures today showed retail spending increased 6.4 percent on Boxing Day from a year earlier, with spending at fast food outlets up 16 percent. Trade Me, the online auction site, fell 0.4 percent to $4.78, while outside the benchmark index Briscoe Group rose 1.8 percent to $3.33, Warehouse Group gained 1.5 percent to $2.09, and Kathmandu was unchanged at $2.40.

Augusta Capital was unchanged at $1.065 percent after the real estate funds management firm secured a second property for a planned industrial fund to be launched next year.

AFT Pharmaceuticals closed unchanged at $2.39 after the drug-maker said it has licensed its Maxigesic painkiller to Laboratories Expanscience's Mexican subsidiary, marking the firm's 125th licensed country for the drug.

Among leading stocks, Fisher & Paykel Healthcare was unchanged at $14.14, Auckland International Airport slipped 0.2 percent to $6.56, a2 Milk Co gained 0.4 percent to $8.16, Meridian Energy fell 0.5 percent to $2.915, Spark New Zealand was unchanged at $3.62, and Fletcher Building decreased 0.4 percent to $7.65. Xero fell 1 percent to $31.40.


© Scoop Media

Business Headlines | Sci-Tech Headlines


"Broad-Based Growth": GDP Rises 1 Percent In June Quarter

Gross domestic product (GDP) rose 1.0 percent in the June 2018 quarter, up from 0.5 percent last quarter, Stats NZ said today. This is the largest quarterly rise in two years. More>>


Judicial Review: China Steel Tarrif Rethink Ordered

On 5 July 2017 the Minister determined not to impose duties on Chinese galvanised steel coil imports. NZ Steel applied for judicial review of the Minister’s decision. More>>

Debt: NZ Banks Accelerate Lending In June Quarter

New Zealand's nine major lenders boosted lending at the fastest quarterly pace in almost two years as fears over bad debts subsided. More>>


Balance Of Trade: Annual Current Account Deficit Widens To $9.5 Billion

New Zealand’s current account deficit for the year ended June 2018 widened to $9.5 billion, 3.3 percent of GDP, Stats NZ said today. More>>