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


MARKET CLOSE: NZ shares rise as investors chase yield

MARKET CLOSE: NZ shares rise as investors chase yield

By Suze Metherell

Oct. 1 (BusinessDesk) - New Zealand stocks rose, paced by Spark New Zealand as investors were lured to the local bourse's relatively high yields. Infratil rose as it sealed the sale of its Australian energy assets and signalled a capital return. Genesis Energy fell as it shed rights to its dividend.

The NZX 50 Index rose 19.546 points, or 0.4 percent, to 5274.583. Within the index, 29 stocks rose, 14 fell and seven were unchanged. Turnover was $107.7 million.

Over the past quarter the benchmark index has gained some 2.2 percent, as the return of Prime Minister John Key and his National government for a third term gave investors confidence the regulatory environment would remain the same. The market was further supported by demand for high-dividend yielding stocks in a global environment were interest rates remain at historic lows. Spark, which offers a dividend yield of 6.1 percent, advanced 2.0 percent to $3.03, recovering after shedding rights to its final 9 cents per share dividend last week.

"We've seen some money flow to the yield players," said Greg Smith, head of research in Fat Prophets. "The New Zealand market is one of the highest yielding around and then there is a little bit of euphoria post the election."

Property trusts, which are held for the steady income stream, rose. Property For Industry climbed 1.1 percent to $1.39. DNZ Property Fund rose 0.6 percent to $1.735. Goodman Property Trust increased 0.5 percent to $1.065. Precinct Properties New Zealand edged up 0.5 percent to $1.09. Kiwi Income Property Trust lifted 0.4 percent to $1.17.

Infratil, the infrastructure investor, climbed 2.1 percent to $2.89. The Wellington-based investor has lowered earnings guidance for the coming year by as much as $40 million, reflecting the sale of its Australian energy assets.It now expects annual earnings before interest, tax, depreciation, amortisation and asset valuation changes will be between $520 million and $545 million in the year ended March 31, 2015, from a previously advised range of between $530 million and $560 million, but still above its 2014 Ebitdaf of $500 million. Yesterday, it finalised the A$646 million sale of its Australian energy assets, Lumo Energy and Direct Connect, to Snowy Hydro, and has flagged a capital return to shareholders with some of the proceeds, which are expected to come in between $335 million and $345 million..

Shedding final dividends were Genesis Energy, which fell accordinginly by 3 percent, or 6 cents, to $1.96; Ebos Group, down 2.2 percent, or 20 cents, to $9.05, and Auckland International Airport declined 1.3 percent, or 5 cents, to $3.80.

Metlifecare, the retirement village operator, rose 1.1 percent, or 5 cents, to $4.65, despite shedding rights to its 2.5 cents final dividend.

NZX fell 1.6 percent to $1.24. The company, which operates the New Zealand stock exchange and the dairy futures market, is offering a Milk Production Predictor, which estimates New Zealand milk production for the coming three months, with forecasts based on climate, pasture growth and cow numbers.

Fletcher Building, the nation's largest listed company, fell 0.5 percent to $8.74.

Outside the benchmark index, Pyne Gould Corp was unchanged at 39 cents. The Guernsey-based asset management firm controlled by George Kerr said it missed yesterday's deadline to submit its final audited accounts for the 2014 year to the stock exchange because of a delay in auditing one of the larger property investments in its Torchlight Fund.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Electricity Authority: Review Of Competition In The Wholesale Electricity Market Raises Questions

In March 2021 the Electricity Authority announced it would conduct a review into competition in the wholesale electricity market. The period of the review covers the sustained elevated electricity prices since an unplanned outage at the Pohokura gas facility in Spring 2018... More>>

Government: RSI ‘State Of The Nation’ Report Published
latest research, science and innovation system report card is now available, and outlines how the system is performing, Research, Science and Innovation Minister Megan Woods has announced. “The report seeks to increase transparency, act as a reliable data source and stimulate discussion... More>>

Fonterra: Increases 2021/22 Forecast Farmgate Milk Price

Fonterra Co-operative Group Limited today increased and narrowed its forecast Farmgate Milk Price range to NZD $7.90 - $8.90 per kgMS, from NZD $7.25 - $8.75 per kgMS. The midpoint of the range, which farmers are paid off, has increased to NZD $8.40 per kgMS, from NZD $8.00 per kgMS... More>>

Pamu & Westpac: Market-leading Sustainability-Linked Loan

Westpac NZ and Pāmu have signed New Zealand’s most comprehensive Sustainability-Linked Loan to date, also the largest in the agricultural sector, and the first involving a state-owned enterprise. Pāmu, also known as Landcorp, is New Zealand’s biggest farming business. It will borrow $85m from Westpac NZ over three years... More>>

Retail NZ: Some Good News In COVID Announcements, But Firm Dates Needed

Retail NZ is welcoming news that the Government is increasing financial support for businesses in light of the ongoing COVID-19 lockdown, and that retail will be able to open at all stages of the new “Covid Protection Framework... More>>

ComCom: Companies In Hot Water For Selling Unsafe Hot Water Bottles And Toys

A wholesaler and a retailer have been fined a total of $140,000 under the Fair Trading Act for selling hot water bottles and toys that did not comply with mandatory safety requirements. Paramount Merchandise Company Limited (Paramount) was fined $104,000 after pleading guilty in the Manukau District Court... More>>