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

 

UPDATE: Fletcher gains as stock stays in MSCI main index

UPDATE: Fletcher gains as stock stays in MSCI main index; A2 up while Mercury drops on exit

(Updates to include stock price movements throughout)

By Sophie Boot

May 15 (BusinessDesk) - A review of global stock indices by MSCI has seen Fletcher Building shares gain after news the stock will remain on the international investment adviser's main global index, with A2 Milk rising on its planned entry and Mercury New Zealand dipping due to its planned removal.

The semi-annual review of the MSCI Equity Indexes saw A2 included in the MSCI Global Standard Index, exiting the MSCI Global Small Cap Index. Mercury will leave the standard index to join the small cap, alongside Restaurant Brands, Synlait Milk and Tourism Holdings. Fletcher Building, which was rumoured to be leaving the main index, will remain.

Investors who follow the indices are required to hold a certain amount of the stock, with changes causing selling and buying in new or departing stocks. The changes announced today will be implemented as of the close of May 31, which is expected to push up volumes on the stock exchange that day as exchange-traded funds which follow indices change their holdings.

About 20 minutes after the S&P/NZX 50 Index opened for trading this morning, Fletcher was up 3.9 percent to $6.62, A2 had gained 0.8 percent to $13.40 and Mercury was down 0.5 percent to $3.14.

"There obviously was a bit of concern that Fletcher Building might come out of the index, so it will likely be positive for them as there will have been a bit of selling ahead of that news," said Grant Williamson, director at Hamilton Hindin Greene, speaking before the market opened. "A2 was pretty well flagged and investors that need to get on board will have done so, but it could very well create some demand today."

"For Mercury, I don't think there will be a huge move there, they had some big news yesterday about their strategy going forward and the market didn't receive that particularly well," Williamson said.

Restaurant Brands rose 0.3 percent to $7.64, Synlait Milk gained 0.4 percent to $10.23, and Tourism Holdings advanced 1.3 percent to $6.20 on news of their inclusion.

The MSCI Global Micro Cap Index was also reviewed, with Serko joining while Briscoe Group, Delegat Group and Tourism Holdings left. Serko and Briscoe were unchanged while Delegat dipped 0.2 percent to $8.40.

In Australia, dual-listed stock Michael Hill International dropped down from the small cap index to the micro cap index. The stock has gained 1 percent to $1.03 on the NZX main board.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Taxing Multinationals: Next Step To Improve System

New legislation to improve the fairness of the tax system and prevent large multinationals from exploiting rules in order to shift their profits offshore has passed another step closer to becoming law. More>>

A Fuel And His Money: Petrol Prices Hit Records

The cost of 91 octane in Wellington and the South Island hit $2.30 a litre last week, beating the previous high set in 2013. Crude oil prices have been rising globally while the New Zealand dollar has fallen, making the cost of fuel more expensive. More>>

ALSO:

NZentry: EU And NZ To Start Free Trade Talks

A free trade deal between New Zealand and the European Union (EU) has taken a major step forward with the announcement overnight that the EU’s Foreign Affairs Council has approved its negotiating mandate. More>>

ALSO:

You'd Hope: Employers Told To Pay Minimum Wage

Advertisers offering jobs to backpackers are being told they must pay the minimum wage or risk prosecution. Last week, RNZ revealed a job website - Backpackerboard - was advertising roles below the $16.50 per hour minimum wage. More>>

ALSO:

Still Gaining: More Migrants Head Back Overseas

Annual net migration is down 4,800 from a high point a year ago, largely because more non-New Zealand citizens are leaving the country, Stats NZ said today. More>>

Christchurch: Red Zone Used To Boost Endangered Bee Population

“May 20 has been declared World Bee Day by the United Nations, and I am pleased to announce today that we have been able to use the red zone to protect and grow our native bee stocks,” says Minister Megan Woods. More>>

Trips, Support, Conferences For Agents: Insurers Spend $34 Million On Soft Commissions

“We are concerned that insurers are designing and offering incentives that potentially set advisers up to fail in complying with their obligations.” More>>

ALSO: