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


MARKET CLOSE: NZX50 climbs 4.1% in week; yield demand reigns

MARKET CLOSE: NZX50 climbs 4.1% in week; yield demand reigns

By Paul McBeth

Sept. 6 (BusinessDesk) - The S&P/NZX 50 Index hit a record, rising 4.1 percent this week with high-yielding utilities and property stocks still in hot demand against a backdrop of ultra-low interest rates.

The benchmark index was up 112.32 points, or 1 percent, at 11,218.99. Within the index, 39 stocks rose, six fell, and five were unchanged. Turnover was a healthy $194.8 million, more than the $159 million daily average during August.

Stock markets were buoyed yesterday by news that the US and China will resume negotiations in their protracted trade war, which has threatened to derail global growth. The prospect of shrinking trade and a worldwide recession has encouraged central banks to cut interest rates, prompting investors to turn to equity markets to seek real returns.

"There's some renewed hope regarding the China-US trade tensions, but given the false dawns we've had there, there's every chance it turns on a dime again," said Matt Goodson, managing director at Salt Funds Management.

Property stocks and power companies attracted heavy trading. Meridian Energy, Contact Energy, Mercury NZ, Goodman Property Trust and Genesis Energy are leading the benchmark index higher this year with gains of up to 58 percent.

Goodson said there has been very aggressive buying of the gen-tailers and property stocks this week, which showed signs of being from overseas passive investors.

"If it's passive buying, there's no explanation required. It's not about making sense, it's just about investing the flow," he said.

Meridian fell 3.3 percent to $5.335, the day's biggest decline, on a volume of 3.8 million shares, more than twice its 1.4 million 90-day average.

Kiwi Property Group was up 0.9 percent at $1.69 on a volume of 2.9 million shares. Contact Energy rose 0.7 percent to $8.98 on 2.6 million, and Genesis increased 0.3 percent to $3.66 with 1.6 million shares changing hands. Goodman was up 0.2 percent at $2.22 on a volume of 1.3 million and Mercury rose 2.7 percent to $5.62 with 1.2 million shares changing hands.

Spark New Zealand was the most traded stock on a volume of 7.1 million shares, more than twice its 3.3 million average. It rose 1.6 percent to $4.645.

Of other stocks trading on volumes of more than a million shares, Sky Network Television rose 1.8 percent to $1.13, Fletcher Building was up 2 percent at $4.71, Z Energy increased 0.2 percent to $6.55, Air New Zealand rose 1.6 percent to $2.86 and Summerset Group advanced 0.6 percent to $6.30.

Exporters remained in favour despite the kiwi dollar recovering from its four-year low earlier in the week. Tourism Holdings led the market higher, up 3.7 percent at $3.89 on a volume of 68,000 shares, less than half its 159,000 average. Vista Group International rose 3.4 percent to $4.25, Scales Corp increased 2.9 percent to $5.05, and Fisher & Paykel Healthcare advanced 2.6 percent to $17.64.

Vector fell 1.5 percent, or 5 cents, to $3.65 after shedding rights to an 8.25 cent dividend.

Fonterra Shareholders' Fund units fell 1.2 percent to $3.18. Fonterra today said it will delay releasing its annual report to give it more time to complete its audited accounts.

Synlait Milk rose 2.2 percent to $9.45 on a volume of 107,000 shares. It was added to the S&P/ASX 300 Index, effective from Sept. 23. A2 Milk increased 2 percent to $15.40.

Outside the benchmark index, IkeGPS climbed 14 percent to 58 cents after saying it was nearing a break-even position and expected to report a record September quarter revenue.

Cannasouth rose 12 percent to 58 cents, its second day closing above the 50-cent initial public offering price.

Summerset's 2025 bond paying 4.2 percent was the most traded debt security on a volume of 163,000. The notes closed at a yield of 2.64 percent, up 4 basis points.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Economy: COVID-19 Lockdown Has Widespread Effects On Labour Market

In the June 2020 quarter, the seasonally adjusted unemployment rate fell to 4.0 percent, down from 4.2 percent last quarter, while underutilisation rose, Stats NZ said today. More>>


NZ Post: New Research By NZ Post Shows Online Shopping Grew 105% In Alert Level 3

New research by NZ Post into how the COVID-19 response has impacted the way Kiwis shop online, shows online shopping increased 105%* when the country moved into Alert Level 3, and may have changed the way Kiwis shop permanently. Online spend peaked ... More>>


Banking: Westpac NZ Lowers Merchant Fees For Small Businesses

Westpac NZ is rolling out a new merchant fee pricing structure that will lead to cost savings for more than 10,000 small and medium Kiwi businesses, and could make contactless transactions more widely available for customers. On 1 September, most ... More>>

REINZ: Million Dollar Plus Property Sales Increase 11.7% Nationally

The number of properties sold around the country for one million dollars or more during the first half (H1) of 2020 increased by 11.7% compared to H1 2019, with 5,426 million-dollar plus properties sold (up from 4,858 in H1 2019) according to the Real ... More>>

Waste: Government To Regulate Plastic Packaging, Tyres, E-Waste

The Government is stepping up action to deal with environmentally harmful products – including plastic packaging, tyres and e-waste – before they become waste. As part of the wider plan to reduce the amount of rubbish ending up in landfills, ... More>>


Bankers Association: Banking Becomes First Living Wage Accredited Industry

Banking has become New Zealand’s first fully living wage accredited industry, leading to nearly 1800 employees and contractors moving onto the living wage and gaining greater economic independence for them and their families. As of today, all ... More>>


QV Valuations: July House Price Index Illustrates Market Resilience

According to the July 2020 QV House Price Index (HPI) results out today , property values recorded a marginal increase, up 0.2% over the month. This is somewhat of a turnaround from June, after the national index edged 0.2% lower. More>>


Property: Queenstown Rents Experience Biggest Drop In Seven Years

Rental prices in the Queenstown-Lakes district saw the biggest annual percentage drop in seven years after falling 28 per cent on June last year, according to the latest Trade Me Rental Price Index. Trade Me Property spokesperson Aaron Clancy said ... More>>

Seismology: The Quiet Earth

As many daily activities came to a halt during lockdown, the Earth itself became quiet, probably quieter than it has been since humans developed the technology to listen in. Seismologists have analysed datasets from more than 300 international ... More>>

RNZ: James Shaw Says Kiwibank, Not Ministers Should Decide On Investors

Climate Change Minister James Shaw says Kiwibank's decision to stop doing business with companies dealing in fossil fuels is the right one. More>>


FMA: Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually ... More>>

FIRST Union: Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off

(FIRST Union comments on The Warehouse consultation and proposed restructure) 'Unfortunately the Warehouse have done the disappointing thing and used Covid-19 to justify a bunch of operational business decisions that will leave hundreds of workers without jobs ... More>>


Stats NZ: Mixed Performance By Regions Leaves National Emissions Picture Unchanged

Approximately two-thirds of New Zealand’s regions recorded decreases in their total greenhouse gas emissions, while one-third of regions saw increases between 2007 and 2018, Stats NZ said today. “While some regions reduced their emissions, ... More>>