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

 

MARKET CLOSE: NZ shares join Asia rally on trade optimism

MARKET CLOSE: NZ shares join Asia rally on trade optimism; Fonterra loss dominates headlines

By Paul McBeth

Sept. 13 (BusinessDesk) - New Zealand shares rose, joining a regional rally on optimism over US-China trade relations. Fonterra Cooperative Group's first annual loss dominated local headlines.

The S&P/NZX 50 index gained 53.42 points, or 0.6 percent, to 9,248.99. Within the index, 30 stocks rose, 15 fell and five were unchanged. Turnover was $153.1 million.

Stocks across Asia rose on reports US Treasury Secretary Steven Mnuchin extended an olive branch to his counterparts in China, inviting them to ministerial level trade talks.

Tensions between the world's two biggest economies increased volatility in financial markets as investors try to gauge the potential impact on global growth. Hong Kong's Hang Seng was up 1.5 percent in afternoon trading, while Japan's Topix rose 1.2 percent. China's Shanghai Composite Index increased 0.1 percent.

Fonterra's annual result kept local investors busy. The cooperative posted a loss attributable to shareholders of $221 million with all business units struggling. The new leadership team is reviewing the entire business and have pledged to reduce debt levels by $800 million. The Fonterra Shareholders' Fund, which gives external investors exposure to the cooperative's earnings, rose 0.8 percent to $5.01.

"A lot of the coverage has been fairly negative and it's a bit of a miss in terms of the forecast they were indicating," said Grant Davies, an investment adviser at Hamilton Hindin Greene. "Shareholders' Fund investors just go along for the ride - you've got no voting rights and you're really putting faith in your directors and the farm gate manual."



He said A2 Milk Co and Synlait Milk have been cleaner investment opportunities for investors. Over the past year, Fonterra fund units have dropped 18 percent, whereas A2 shares have climbed 101 percent and Synlait are up 165 percent. A2 today slipped 0.3 percent today to $12.06, while Synlait rose 1.5 percent to $13.20.

Contact Energy rose 0.4 percent to $5.73. Monthly operating stats showed the country’s second-largest power and gas retailer lost the most customers in one month for seven years, falling to 410,500. Davies said the power companies were still basking in a relatively benign government review paper, which found they didn't extract excessive profits.

Mercury NZ slipped 0.2 percent to $3.285, Meridian Energy rose 1.6 percent to $3.28 and Genesis Energy fell 0.6 percent to $2.49.

Trade Me led the market higher, up 3.8 percent to $5.17. Kathmandu Holdings rose 1.9 percent to $3.16 ahead of next week's annual result. Tourism Holdings posted the biggest fall, down 2.3 percent to $5.52.

Among blue-chip companies, Fletcher Building rose 1.3 percent to $6.32, Port of Tauranga gained 1.2 percent to $5.13, Auckland International Airport increased 1 percent to $6.99 and Fisher & Paykel Healthcare advanced 1 percent to $15.25. Air New Zealand increased 0.2 percent to $3.165 and Spark New Zealand rose 0.4 percent to $4.035.

Several companies shed rights to dividend payments today. Precinct Property New Zealand fell 2 cents to $1.44 after shedding rights to a 1.45 cents per share dividend. Metlifecare declined 3 cents to $6.29 after shedding rights to a 6.75cps dividend, and Freightways fell 8 cents to $7.80 after giving up rights to a 15.25cps dividend. Stride Property Group fell 1 cent to $1.95, shedding rights to a 2.2cps dividend.

Outside the benchmark index, Methven fell 1 cent to $1.18 after shedding rights to a 4cps dividend, Seeka was unchanged at $6.10 giving up a 12cps dividend, and TIL Logistics slipped 2 cents to $1.66 after shedding a 2.3cps dividend.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Zero Gross CO2 Target, Separate Biological Emissions: Environment Commission On ETS

A report about taking an alternative ‘landscape approach’ to Aotearoa New Zealand’s long-term climate change targets and policies has been released today by the Parliamentary Commissioner for the Environment, Simon Upton. More>>

ALSO:

Tax Bill Passes, Drops: “An End To Unnecessary Secondary Tax”

“The changes mean Inland Revenue will more closely monitor the tax paid by wage and salary earners through the year. If it appears the worker is being over taxed, Inland Revenue will suggest a more suitable PAYE tax code tailored to that worker.” More>>

ALSO:

Ethiopian Airline Crash: Boeing 737 Max Aircraft Operations Temporarily Suspended

New Zealand’s Civil Aviation Authority has suspended the operation of Boeing 737 MAX aircraft to or from New Zealand. Currently this affects only one operator, Fiji Airways. There are no other airlines that fly this aircraft type to New Zealand. More>>

ALSO:

Sorting Out DNA: Crime-Busting Software Wins Top Science Prize

Software developed in New Zealand that has contributed to identifying suspects in tens of thousands of criminal cases around the world has won the 2018 Prime Minister’s $500,000 Science Prize. More>>

ALSO:

In The High Court: IRD Wins Tax Avoidance Case

Inland Revenue has won a High Court case against Eric Watson’s Cullen Group over a nearly $52 million tax debt. More>>

ALSO:

Insurers Withdraw From Market: Plea For EQC Rethink

A consumer watchdog wants the government to rethink the Earthquake Commission (EQC) as more people are pushed out of getting property and contents insurance. More>>

ALSO: