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


MARKET CLOSE: NZ shares rise on yield hunt; Spark, AIA up

MARKET CLOSE: NZ shares rise on yield hunt; Spark, AIA, Mainfreight gain

By Suze Metherell

Sept. 8 (BusinessDesk) - New Zealand shares rose on demand for income-paying stocks ahead of this week's expected interest rate cut by the Reserve Bank. Spark New Zealand led stocks higher, as Auckland International Airport and Mainfreight gained.

The S&P/NZX 50 Index rose 37.58 points, or 0.7 percent, to 5610.31. Within the index, 29 stocks rose, 18 fell and three were unchanged. Turnover was $152 million.

Governor Graeme Wheeler is expected to cut the official cash rate by a quarter point to 2.75 percent with the quarterly monetary policy statement on Thursday, according to all 11 economists in a Reuters survey. The prospect of lower rates has drawn investors to equities, and underpinned the local bourse despite offshore volatility, including concerns China's economic growth is cooling and uncertainty surrounding Greece and the Eurozone.

Income paying stocks rose. Spark, formerly Telecom Corp, led the benchmark index higher advancing 3.9 percent to $3.34. Auckland Airport, the nation's busiest gateway, rose 1.7 percent to $4.86. Mainfreight, the logistics and courier company, gained 1.5 percent to $14.92. MightyRiverPower, the government owned energy firm, increased 0.2 percent to $2.775. Meridian Energy gained 0.2 percent to $2.17.

Demand for dividend yields continues "given the fact we're possibly looking at a cut in the OCR on Thursday," said Peter Valk, investment adviser at Craigs Investment Partners. "The lower interest rates go the more people will be looking for alternative stocks that pay a reasonable dividend return."

Volatility was expected to linger, Valk said. "There's no silver bullet that's going to make it go away, we're still seeing questions regarding China's slowing economy and we're seeing a fair bit of rocking out of Greece."

Fisher & Paykel Healthcare, the breathing apparatus exporter, climbed 2.3 percent to $7.43. The decline in interest rates has pushed the New Zealand dollar down from its highs, supporting exporters.

Pacific Edge, the biotech firm, was the worst performer on the benchmark index, down 3.1 percent to 46.5 cents.

Coats Group, formerly Guinness Peat Group, declined 1.6 percent to 61 cents.

Fletcher Building, the construction and building supplies firm, fell 1.6 percent to $6.93.

Infratil declined 1 percent to $3.01. Morrison & Co, which is also the manager for the infrastructure investor Infratil, agreed to buy into a wind farm in southwest Victoria for A$532 million, owned by AGL Energy, Australia's largest listed renewable energy company.

Outside the benchmark index, Smartpay Holdings declined 3 percent to 16 cents after the payment terminal supplier said it expects earnings to decline for a second year as it rebuilds its Australian taxi business after losing a key customer.


© Scoop Media

Business Headlines | Sci-Tech Headlines


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>>


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>>


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>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>


Electricity: New Zealand Remains In Top 10 For Energy Balance

The World Energy Council’s Energy Trilemma Index has become part of the energy dialogue both globally and in New Zealand. The Index illustrates the need for countries to balance energy security, energy equity and environmental sustainability. New Zealand ... More>>


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>>


Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>