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

 

MARKET CLOSE: NZ shares rises onpositive offshore leads

MARKET CLOSE: NZ shares rises as positive offshore leads spur buying


By Rebecca Howard

Jan. 11 (BusinessDesk) - New Zealand shares rose as investors were cheered when US Federal Reserve Chairman Jerome Powell reiterated the US central bank can be patient on raising interest rates further.

The S&P/NZX 50 index rose 40.42 points, or 0.5 percent, to 8,959.58. Within the index, 31 stocks rose, seven were unchanged and 12 fell. Turnover was $61.1 million.

Powell told the Economic Club of Washington DC the Fed can "watch patiently and carefully." His comments, coupled with other similar comments from Fed officials recently, has meant the market has pared back its expectations regarding Fed rate hikes for this year, increasing the attractiveness of equity markets. Investors, however, are still jittery about the US-China trade tensions. US and Chinese officials are now working on arrangements for higher-level trade talks after mid-level officials met this week.

Leads from US markets were reasonably strong "and we have flowed on from there," said Grant Davies, an investment advisor at Hamilton Hindin Greene in Christchurch. The Dow Jones Industrial Average added 0.5 percent in overnight trading.

With few domestic drivers, investor sentiment is largely being driven by events offshore. Volumes remained very tepid and "we are still in that holding pattern coming up to the earnings season in February," he said.

Synlait Milk added 0.8 percent to $9.27 after it said registration of its Dunsandel plant in the South Island has been renewed by Chinese authorities for another four years.

A2 Milk added eased 0.1 percent to $11.35.

The most heavily traded stock was Kiwi Property Group, which added 0.4 percent to $1.385 while Spark New Zealand was the second, adding 0.1 percent to $4.165, although volumes were well below the average of the past 90 days. Z Energy also saw fairly heavy trading, with around 621,155 shares trading hands, below the daily average of 1 million in the past three months. It gained 2.2 percent at $5.61.

Sky Network Television, up 4.8 percent at $1.98, was the biggest mover on the day, followed by SkyCity, which added 2.6 percent to $3.62.

In the other direction, the Fonterra Shareholders' Fund fell the most, losing 2.1 percent to $4.70 on some bargain-hunting after it gained in recent sessions. Air New Zealand shed 1.1 percent to $3.16 while Auckland International Airport was down 0.8 percent at $7.22.

Fletcher Building fell 0.6 percent to $4.94. According to Stats NZ, New Zealand councils consented almost 32,800 new dwellings in the year through November, 5.3 percent more than a year earlier.

Ahead of the February earnings season, Davies said investors are now watching for any Christmas updates from retailers, in particular after Kathmandu's disappointing Christmas result. Kathmandu, which has fallen 17.6 percent this year, ended down 0.4 percent at $2.25

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>

ALSO:

Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>

Bus-iness: Transdev To Acquire More Auckland And Wellington Operations

Transdev Australasia today announced that it has agreed terms to acquire two bus operations in Auckland and Wellington, reaching agreement with Souter Investments to purchase Howick and Eastern Buses and Mana Coach Services. More>>

ALSO:

Māui And Hector’s Dolphins: WWF/Industry Counter Offer On Threat Management Plan

Forest & Bird says WWF-NZ's plan for protecting Māui dolphins is based on testing unproven methods on a species that is almost extinct, and is urging the Government to reject the proposal. More>>

ALSO: