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


MARKET CLOSE: NZ shares up, Trustpower and Infratil rise

MARKET CLOSE: NZ shares up, Trustpower and Infratil rise while Fletcher Building gave back gains.

By Sophie Boot

Oct. 13 (BusinessDesk) - New Zealand shares gained, led by Trustpower and Infratil on earnings upgrades, while Fletcher Building gave back gains.

The S&P/NZX50 Index rose 0.3 percent, or 21.2 points, to 8,089.32. Within the index, 26 stocks rose, 16 fell and eight were unchanged. Turnover was $179 million.

Grant Davies, investment advisor at Hamilton Hindin Greene, said the stock market is unperturbed by the continued lack of government. Winston Peters has now said that the New Zealand First board will meet on Monday, after the final round of negotiations finished yesterday, but wouldn't give a deadline for a decision being made.

"The market has been through this before, it's really just boiling down to what companies are doing rather than what the government is doing," Davies said. "Stocks are being driven by momentum at the moment."

Xero, Synlait Milk and A2 Milk Co, all of which have seen strong gains over the past fortnight after positive news, continued to rise today. Xero gained 3.1 percent to $35.10; Synlait rose 0.3 percent to $7.48; and A2 advanced 0.4 percent to $7.77.

Trustpower led the index, up 3.9 percent to $5.89. It raised annual earnings guidance for a third time this financial year with strong wholesale electricity prices on both sides of the Tasman and increased generation in New Zealand, also boosting the outlook for controlling shareholder Infratil whose shares gained 1.6 percent to $3.16.

The Tauranga-based company forecasts earnings before interest, tax, depreciation, amortisation and fair value adjustments to be between $255 million and $270 million in the year ending March 31, 2018, up from a previous forecast of $225 million-to-$245 million. Infratil now sees ebitdaf of between $485 million and $525 million in the year ending March 31, 2018, up from a previous forecast of $460 million-to-$500 million.

Fisher & Paykel Healthcare rose 1.3 percent to $12.82. It is considering whether to appeal a ruling by the Regional Court in Munich that rival ResMed did not infringe its patents in one of the cases in the continuing intellectual property dispute over its face and nasal masks.

Fletcher Building was the worst performer, down 1.9 percent to $7.71, though Davies said the stock was just giving back yesterday's gains.

NPT gained 3.5 percent to 59.5 cents. The listed property investor has sold its interest in the AA Centre in central Auckland to SkyCity Entertainment Group for $47 million, as it looks to reposition the business after a board overhaul. Sky City fell 0.8 percent to $3.71.

Outside the benchmark index, Warehouse Group dropped 0.9 percent to $2.14. Founder Stephen Tindall will take a year off from the board to focus on his other commitments, especially the preparations for Auckland to host the America's Cup.

Tindall is taking a leave of absence from the board until October next year, with his son Robbie Tindall standing in as an alternate director, the retailer said in a statement. He's taking a break to focus on his commitments as Team New Zealand chair, such as securing the necessary infrastructure for Auckland's hosting of the America's Cup defence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>