MARKET CLOSE: NZ Stocks Rise; Rakon gains 11%
MARKET CLOSE: NZ Stocks Rise a Third Day; Rakon gains 11%
Nov. 27 – New Zealand stocks rose, bringing the NZX 50 Index’s three-day rally to 3.6% as investors with a longer time horizon sought companies likely to maintain their dividends.
The NZX 50 gained 30.843, or 1.2%, to 2668.744. Within the index, 33 stocks gained, seven fell and 10 were unchanged. The benchmark index has fallen 35% this year. Rakon climbed 13 cents to NZ$1.32, having slumped 40% in a month.
“Some people are happy to look over the horizon, six to nine months out,” said Alan Moore, who helps oversee NZ$250 million at Milford Asset Management Ltd. “The market does look that far in advance and some people will be starting to nibble away.”
Sky City Entertainment “would be a yield play,” Moore said.
The casino operator’s stock gained 5% to NZ$3.15 today. On an historical dividend basis, the stock is yielding 10%. Rakon is one of the stocks “which had a huge fall.”
AFFCO Holdings, the meat company that has outperformed the NZX 50 Index this year, was unchanged at 40 cents today and has gained 20% this year, while the NZX 50 fell 32%. It turned to a full-year profit after a pick up in sales in the second half and a one-time gain from Dairy Trust.
Mainfreight advanced 6.6% to NZ$4.55, making it the biggest gainer after Rakon. Rival freight company Freightways Ltd. fell 3.8% to NZ$2.75.