NZX listings ‘worth serious consideration’, AMP Capital says 26 Oct 2011
- NZ dollar holds near 5-year high vs. Australian dollar Business
- MARKET CLOSE: NZX 50 falls to 2-month low, Infratil drops Business
- Wellington Electricity settles with regulator over pricing Business
- Indicative bids on Transpacific Industries’ NZ unit closing Business
- NZ Antique & Classic Boatshow - Nelson Lakes National Park News
- Delegat’s sees 10% lift in 2014 profit Business
- Infratil on-market buyback completed at $2.38 a share Business
- Forest owners easier target on safety lapses in new regime Business
- SkyCity earnings to get kicker from Adelaide in 2007: Craigs Business
- SFO passes on bulk of complaints, not worried about budget Business
NZX listings ‘well worth serious consideration’, AMP Capital says
By Paul McBeth
Oct. 26 (BusinessDesk) – The rush of new listings to the New Zealand stock exchange are “well worth serious consideration” amid a time of great global uncertainty, according to AMP Capital Investors NZ, one of the country’s biggest fund managers.
AMP Capital, which oversees some $12 billion in New Zealand assets, is looking forward to a raft of new listings on the NZX, including retirement village operators Summerset and Vision Senior Living, online auction site Trade Me, and the government-owned electricity generators Genesis Energy, Meridian Energy, Mighty River Power and coal miner Solid Energy.
“It just looks like a very attractive range of opportunities to us,” head of equities Guy Elliffe told a media briefing in Wellington. “We regard most of the companies... as well worth serious consideration.”
The government wants to raise as much as $7 billion from selling down minority stakes in the energy companies and airline Air New Zealand, while Australia’s Quadrant Private Equity is looking to raise $123.6 million for a 30 percent stake in Summerset and Fairfax Media will reportedly raise $300 million from a partial sale of Trade Me.
“To have some new large exciting liquid listings is only positive from our perspective,” Elliffe said, referring to the SOE floats. “I think it’s great. It just means the capital markets are open and functioning.”
Risks from Europe mean fixed interest assets are more attractive for investors, and bond yields have stayed low throughout the heightened volatility.
Though AMP Capital’s own funds are fully-mandated, head of fixed interest Grant Hassell said he expects retail investors with cash in bank term deposits will mop up shares.
AMP Capital chief economist Bevan Graham said that means New Zealand stocks are cheaper than local bonds, though still more expensive than global equities.
He says New Zealand is in relatively good shape compared to other developed nations due to its increased reliance on Asian trading partners and the increased demand for food-based commodities.
New Zealand’s monetary policy is still very stimulatory, and Graham said he doesn’t expect Reserve Bank Governor Alan Bollard to start hiking interest rates until next year.
Bollard will review the official cash rate tomorrow, and is expected to keep it on hold at 2.5 percent. Traders are betting Bollard will lift the OCR by 32 basis points over the coming year, according to the Overnight Index Swap curve.
AMP Capital’s funds were mainly neutral, with small underweight positions in Australasian equities and commodities, and small overweight positions in cash and currency.
It made a 3.1 percent average quarterly loss on local equities, and a 10.1 percent loss on unhedged global stocks. Its hedged stocks made a quarterly loss of 16.7 percent, and Australian equities made a loss of 13.7 percent.
Property reported a 1.1 percent quarterly gain, while global property made a loss of 18.3 percent in the quarter.
New Zealand fixed interest made a return of 3.5 percent in the three months ended Sept. 30, while global fixed interest reported a gain of 4.6 percent. Cash made a 0.9 percent return in the quarter.
5 Dec 2013 News
New Zealand Government Hon Dr Nick SmithMinister of Housing 5 December 2013 Govt invests further $31 million in Hobsonville The... more
5 Dec 2013 Business News
Article - BusinessDesk SkyCity earnings to get kicker from Adelaide redevelopment in 2017, brokerage says By Tina ... more
5 Dec 2013 Business News
Article - BusinessDesk Forest owners easier target on health, safety lapses under new regime, MBIE’s Smol says By Paul ... more
5 Dec 2013 Entertainment
Two true Kiwi legends – Dave Dobbyn and Don McGlashan – have come together on stage for the first time, and this weekend... more
4 Dec 2013 Property
Auckland house prices rose at the rate of $677 a day in November, based on the average price increase from October to... more
4 Dec 2013 Property
New Zealand Government Hon Dr Nick SmithMinister of Housing 3 December 2013 Bill to rein in housing development charges passes first... more
4 Dec 2013 Migration
The typical Kiwi on Census day 2013 was aged 38, earned $28,500 a year, worked in a service job and owned his or her own... more
4 Dec 2013 Travel & Tourism
Afghanistan, North Korea and Somalia are seen as the world's most corrupt countries while Denmark and New Zealand are nearly ... more
5 Dec 2013 Rugby
The All Blacks, Kieran Read and Steve Hansen enjoyed a fitting conclusion to their perfect season when they were recognised at... more
5 Dec 2013 Motor Sport
epay Silver Fern Rally Media Release4 December 2013 – Immediate release Entries Open As epay Silver Fern Rally Takes... more
5 Dec 2013 Column
Column - Gordon Campbell Gordon Campbell on John Banks, and blogging’s merits by Gordon Campbell It is hard to feel ... more
4 Dec 2013 Column
Column - Gordon Campbell Gordon Campbell on New Zealand’s PISA education rankings by Gordon Campbell Perhaps a bit more... more
2 Dec 2013 People
Universal College Of Learning Media Release Monday 2 December 2013 UCOL salutes its Top Scholars UCOL Bachelor of Nursing... more
29 Nov 2013 Recruitment
Article - BusinessDesk Unemployment to hit 4% by 2021, says MBIE Nov. 29 (BusinessDesk) – Job growth and higher... more