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

 

MARKET CLOSE: NZ shares fall, paced by Tower, PGW before Fed

MARKET CLOSE: NZ shares fall, paced by Tower, PGG Wrightson before Fed

By Hannah Lynch

Sept. 13 (BusinessDesk) - New Zealand shares fell, nudging the NZX 50 Index from the highest in more than four years, on bets stocks have risen enough to account for any extra stimulus the Federal Reserve should announce this week. Tower and PGG Wrightson dropped.

The NZX 50 Index fell 3.67 points, or 0.1 percent, to 3786.04. Within the index, 17 stocks rose, 22 fell and 39 were unchanged. Turnover was $105 million.

Investors are betting the Fed will announce a third round of asset purchases as well as extend a pledge to keep interest rates at record low levels. Reserve Bank Governor Alan Bollard kept New Zealand’s target rate unchanged today, citing weak growth in trading partner nations and a high kiwi, which is hurting manufacturers.

"The New Zealand markets has had a good run up until today on expectations of improving stimulus from the world's central banks," said Shane Solly, portfolio manager at Mint Asset Management. "The markets have factored in some level of quantitative easing - if it comes out in a weaker form, markets will be softer."

Tower fell 2.7 percent to $1.80. Chairman Bill Falconer, who was due to retire in February, has stepped down as the insurer considers proposals from other parties following a strategic review aimed at lifting the value of the company.

PGG Wrightson, New Zealand's largest agricultural firm and majority owned by Chinese investor Agria, fell 2.6 percent to 37 cents.

"PGG is one of the ones that is being talked about for the next merger and acquisitions story," Solly said.

Fisher & Paykel Appliances continued its rally, gaining 1.3 percent to $1.18 in the wake of Haier’s proposal to buy the 80 percent of the company it doesn’t already own for $1.20 a share. F&P Appliance today hired Grant Samuel as independent adviser, as it prepares its target company statement.

The company’s F&P Finance unit may have its credit rating raised one notch to BB+ by Standard & Poor’s because a takeover of parent Fisher & Paykel Appliances by China’s Haier is likely to bolster its credit profile.

Vital Healthcare Property Trust shed 1.2 percent $1.22. The Auckland-based company has brought the land and buildings of Sportsmed, a private hospital in Adelaide, for A$29.2 million.

Australian lender Westpac Banking Corp fell 0.8 percent to $30.40, while Australia New Zealand Banking Group shed 0.9 percent to $30.61.

The decline was led by OceanaGold, which operates the Macraes goldfield near Dunedin, down 3.4 percent to $3.38.

Warehouse, New Zealand's biggest listed retailer, climbed 1 percent to $2.90, while Kathmandu, the outdoor clothing and equipment chain, gained 1.1 percent to $1.78 ahead of its full-year results next week.

The gainers were led by Air New Zealand, the airline slated for government sell down, up 2.3 percent to $1.13.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Energy: New Zealand Could Be World’s First Large-scale Producer Of Green Hydrogen

Contact Energy and Meridian Energy are seeking registrations of interest to develop the world’s largest green hydrogen plant. The plant has the potential to earn hundreds of millions in export revenue and help decarbonise economies both here and overseas... More>>


MBIE: 36th America’s Cup Post-event Reports Released

Post-event reporting on the 36th America’s Cup (AC36) has been released today. The reports cover the delivery of the event by Crown, Council and America’s Cup Event Limited, economic impacts for Auckland and New Zealand, and delivery of critical infrastructure... More>>

Fonterra: Farmer Feedback Set To Shape Revised Capital Structure Proposal

With the first phase of Fonterra’s capital structure consultation now complete, the Co-op is drawing up a revised proposal that aims to reflect farmers’ views. A number of changes are being considered to the preferred option initially put forward in the Consultation Booklet in May... More>>




Statistics: Household Saving Falls In The March 2021 Quarter

Saving by New Zealanders in the March 2021 quarter fell to its lowest level in two years after rising sharply in 2020, Stats NZ said today. Increases in household spending outpaced income growth, leading to a decline in household saving from the elevated levels that prevailed throughout 2020... More>>

ALSO: