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

 

MARKET CLOSE: NZ stocks rise; AMP leads gainers

MARKET CLOSE: NZ stocks rise; AMP leads gainers on AXA bid

(BusinessDesk) – New Zealand stocks rose, led by AMP Ltd., after it teamed with AXA SA to make a new takeover offer for Australia’s AXA Asia Pacific Ltd.

The NZX 50 Index rose 17.64 points, or 0.5%, to 3,328.22. Within the index, 23 stocks rose, 14 fell and 13 were unchanged. Turnover was $63.4 million.

U.S. stocks fell on Friday, sending the Standard & Poor's 500 Index down 1.2%, after Cisco Systems' forecast missed estimates and has concern swirled about Europe's sovereign debt crisis. Sentiment was further dented by sliding commodity prices.

“It is quite surprising to see New Zealand firmer after the weakness on Friday from offshore,” said Grant Williamson. “We don’t seem to be paying too much attention to movements in the U.S. market, with demand for our currency and quality high yield stocks underpinning the market.”

AMP, the Australian wealth manager, rose 5.2% to $7.15 on the NZX and rose 4% to A$5.54 on the S&P/ASX 200 Index after announcing a takeover proposal that values AXA Asia Pacific at A$13.3 billion. That’s the same valuation as for National Australia Bank’s offer, which was knocked back by regulators.

Under the proposed scheme of arrangement, minority shareholders of AXA AP would get at least A$6.43 a share in stock and cash, according to a statement from AXA AP. The offer is for 0.73 AMP stock and a variable amount of cash, based on the weighted average trading price of AMP’s shares.

Pyne Gould Corp., the financial services company, rose 2.4% to 42 cents after announcing plans to distribute most of its stake in the proposed South Island bank if the merger proceeds.

The remaining holding will be separately placed to investors about the same time as the distribution to raise cash for Pyne Gould. Today's statement says the stake will be 72% of the new bank, although previous documentation has put the holding at 71%. The exact amount to be distributed and how much will be placed hasn't been decided yet.

Telecom Corp., New Zealand’s biggest telephone company, rose 1.8% to $2.22, a
seven-month high. Williamson said the price looked to be driven by foreign buying as well as the company’s possible participation in government’s ultrafast broadband project.

Guinness Peat Group, the investment company, rose 1.4% to 74 cents after saying its Coats business had benefited from stronger demand in the second half of the year.

The industrial thread maker, which is GPG’s largest investment, has found its crafts market “has remained challenging,” maintaining sales at 2009 levels, GPG says. Raw material prices peaked in the September quarter, “putting pressure on gross margins.”

Australia and New Zealand Banking Group, the country’s biggest lender, rose 0.3% to $29.65 on the NZX. The Australia-based owner of the ANZ and National Bank brands in New Zealand plans to invest a further A$126 million in China’s Bank of Tianjin.

ANZ already owns 20% of the Chinese bank and the additional investment represents it share of its planned 4.2 billion yuan capital raising to support growth.

Pike River Coal Ltd. rose 1.1% to 96 cents after chief executive Peter Whittall told shareholders at the company’s annual meeting that he is confident in the business’s fundamentals despite a number of setbacks.

The coal miner was forced to cut its production forecast by almost half to 340,000-to-360,000 tonnes due to delays at its hydro mining operations.

Steel & Tube Holdings, the maker of steel products used in the construction industry, fell 3.8% to $2.30, pacing decliners on the main board.

Cavalier Corp, the country’s only listed carpet maker, fell 3.1% to $3.10, and
Vital Healthcare Property Trust, the investor in specialist medical clinics, fell 2.3% to $1.25.

Pumpkin Patch Ltd., the children’s clothing retailer, fell 2.1% to $1.85, and Kathmandu Holdings, the outdoor clothing retailer, fell 0.6% to $1.66.

Williamson said the sector was unlikely to show any earning improvements soon with retailers using discounts to lure customers into buying.

New Zealand’s service sector maintained its expansion last month though the pace of growth slowed, according to the BNZ-Business NZ Performance of Services Index.

The index stood at 52.0 last month, down 2.9 points from September. Retail sales make up about two-third of the services sector survey.

Government figures also showed retail sales unexpectedly rose in the third quarter, suggesting consumers increased spending ahead of the hike in GST last month.

Sales rose 0.7% from the second quarter, when they gained a revised 1.5%, the government statistician said.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>

ALSO:

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO: