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


MARKET CLOSE: NZ shares rise; Trade Me, F&P gain

MARKET CLOSE: NZ shares rise; Trade Me, F&P gain; CBL soars on debut

By Suze Metherell

Oct. 13 (BusinessDesk) - New Zealand shares rose, led by Trade Me Group and Fisher & Paykel Healthcare, as the local market's consistency attracts investors after a volatile September quarter. Insurer CBL Corp debuted at a premium to its sale price.

The S&P/NZX 50 Index advanced 12.98 points, or 0.2 percent, to 5702.81. Within the index, 15 stocks rose, 26 fell and nine were unchanged. Turnover was $151.3 million.

The benchmark index has gained 2.2 percent this month, erasing some of last quarter's 3.5 percent decline, when a pessimistic outlook for global growth weighed on local investor sentiment. Larger stocks with heavier trading activity led today's gainers, with Trade Me, the auction house and New Zealand's 15th largest listed company, up 2.8 percent to $3.71. F&P Healthcare, the breathing apparatus manufacturer and the fifth largest stock, climbed 2 percent to $7.20. Ryman Healthcare, the retirement village operator and the seventh biggest stock, advanced 1.8 percent to $7.28. Auckland International Airport, New Zealand's largest listed company, rose 1.4 percent to $4.85.

"The market isn't under a lot of pressure," said Nigel Scott, director at Craigs Investment Partners. "Investors remain comfortable that the market has been a consistent performer since the fall back of the US about a month ago now. The New Zealand story is just more consistent at the moment."

Outside the benchmark index, CBL, the credit surety and financial risk insurer, advanced 14 percent to $1.77 in its NZX debut. The shares sold in its initial public offering price at $1.55, the lower end of the range. The $125 million offer came during a period marked by volatile markets as investors weighed the outlook for the US Federal Reserve to hike rates for the first time in a decade, while nervousness about China's growth outlook spooked traders from equities as an asset class.

"The pricing was done when macro events were certainly seeing the market get whacked, so the pricing in the book build and IPO process was done when the market was taking a relative walloping," said James Smalley, director at Hamilton Hindin Greene. That meant the managers of the offer priced the stock more conservatively than they otherwise might have.

"Because of improved sentiment in markets that's why we're seeing the price up," Smalley said. "It just shows you how quickly sentiment can change on the stock market."

Fletcher Building, the construction and building supplies company, fell 1.1 percent to $7.18. Spark New Zealand, the telecommunications company, fell 0.5 percent to $3.05.

Augusta Capital, the listed property and funds manager, rose 0.5 percent to 97.5 cents. It has bought a 15 level building in central Auckland for $16.5 million from Cook Property Group.


© Scoop Media

Business Headlines | Sci-Tech Headlines


RNZ: Porirua Most Expensive Region To Rent, According To Trade Me

A rental website shows this town is now New Zealand's most expensive region to rent a house, ahead of Wellington and Auckland cities. More>>


Stats NZ: Nearly 1,000 More Big Businesses Now Than Two Decades Ago – Media Release

There are now 2,690 big businesses in New Zealand employing more than 100 staff – nearly 1,000 or 58 percent more than 20 years ago, Stats NZ said today. Over the 20 years to February 2020, the total number of enterprises in New Zealand increased ... More>>


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>>


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>>


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>>


CERT NZ: Malicious Computer Virus Targeting New Zealanders

CERT NZ, the government agency which supports organisations and individuals affected by cyber security incidents, says a recent surge of increasingly sophisticated malware attacks is affecting everyday New Zealanders as well as large organisations. The ... 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>>


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>>