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

 

MARKET CLOSE: NZ shares soar on election result, led by MRP

MARKET CLOSE: NZ shares soar on election result, led by energy companies

By Suze Metherell

Sept. 22 (BusinessDesk) - New Zealand shares jumped, led by MightyRiverPower, after the National Party's convincing election victory on the weekend wiped out any regulatory fears for the power companies. Meridian Energy, Genesis Energy and Contact Energy paced gains.

The NZX 50 Index advanced 54.947 points, or 1.1 percent, to 5236.292. Within the index, 27 stocks rose, 13 fell and 10 were unchanged. Turnover was $144.2 million.

During the day, benchmark index climbed as much as 74.926 points, or 1.5 pecent, after Saturday's general election delivered the incumbent National Party a third term and the ability to govern alone. The partially privatised generator-retailers rose to records after the election win shut down the threat of regulation, which had been a cornerstone policy for opposition parties in trying to drag down power prices for consumers.

MightyRiverPower climbed 7.5 percent to $2.59, the highest it's closed at since shortly after its listing in May last year. Meridian advanced 4.8 percent to a record close of $1.52. Genesis increased 1.6 percent to $1.95, paring its earlier gain when it rose as high as $2.08. Contact Energy jumped 4.5 percent to $5.85, TrustPower gained 2.9 percent to $7.40, and infrastructure investor Infratil climbed 4.1 percent to $2.775.

"The market is buoyant and led by the power companies, which is not a surprise, given the regulatory risk declined with the National party coming into power again," said Shane Solly, director at Harbour Asset Management. The return of the National government means a" a consistent framework and more of the same" giving the market certainty.

Air New Zealand, the national carrier sold down by the government in its asset sale programme, rose 1.8 percent to $1.945.

Other companies facing regulatory threat paced gains, with telecommunications network operator Chorus advanced 1.1 percent to $1.77, as it faces a protracted dispute with the Commerce Commission over the pricing of its regulated copper lines network, while casino operator SkyCity Entertainment Group, the beneficiary of a deal with the National-led government to build a convention centre in Auckland, rose 0.8 percent to $3.70.

Steel & Tube rose 3.5 percent to $2.95. Fletcher Building, New Zealand's largest listed company, advanced 2.6 percent to $9.05.

"Interestingly we're seeing the likes of Steel & Tube and Fletcher Building up as well," indicating National's win was seen as a positive for the broader market, Solly said.

Spark New Zealand, formerly Telecom Corp, rose 0.5 percent to $3.015.

Kathmandu Holdings rose 1.9 percent to $3.15, ahead of tomorrow's annual earnings announcement, where it's expected to report underlying earnings of between $62.5 million and $65.5 million, compared to $63.4 million a year earlier.

Outside the benchmark index, Synlait Milk, which twice cut its earnings forecast, rose 0.6 percent to $3.32. Today the dairy company posted earnings growth that met revised guidance and said it plans to take a 25 percent stake Sichuan New Hope Nutritional Foods Co to gain a direct interest in a Chinese infant formula brand. Profit rose 70 percent to $19.6 million in the 12 months ended July 31, from $11.5 million a year earlier, the Rakaia-based company said in a statement.

Pumpkin Patch, the childrenswear chain trying to revive falling sales in a changing retail environment, advanced 2.4 percent to 42 cents as it continues to refresh its board, with chair Jane Freeman announcing her departure. Peter Schuyt, who has been an independent non-executive director since 2012, will take over from Freeman at the start of next month, while former Warehouse Group executive Luke Bunt will join the Pumpkin Patch board.

Shares of SLI Systems rose 4.8 percent to $1.32. The Christchurch-based online search engine developer said some of its initial shareholders may be selling shares after about two-thirds of the company's issued stock came out of escrow.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>


Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>