NZX listings ‘worth serious consideration’, AMP Capital says 26 Oct 2011
- Coats to take loss on 'difficult' sale of EMEA Crafts unit Business
- NZ dollar gains before Wheeler speech, as stocks rebound Business
- MARKET CLOSE: NZ shares fall on China jitters, Xero, Pacific Business
- NZ dollar gains as Beijing tries to support stocks Business
- NZ institutional investors set up new governance forum Business
- New initiative to improve overseas driver safety News
- Green Cross declares 15 cent special dividend Business
- Gordon Campbell on the PM’s TPP concessions on medicines News
- Maori businesses more optimistic, profitable Business
- Health and safety reforms preserve main principles: Z Energy 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.
24 Jul 2015 News
New Zealand Government Hon Craig Foss Minister for Small Business 24 July 2015 Small businesses urged to value and protect... more
23 Jul 2015 News
New Zealand Labour Party 23 July 2015MEDIA STATEMENT Labour will not support TPP if it undermines NZ sovereignty The Labour Party... more
24 Jul 2015 Business News
Article - BusinessDesk MARKET CLOSE: NZ shares extend fall on OCR disappointment; Meridian, Genesis drop By Suze ... more
24 Jul 2015 Business News
Article - BusinessDesk New health and safety rules relaxed for small businesses By Pattrick Smellie July 24 (BusinessDesk) -... more
23 Jul 2015 Entertainment
Article - BusinessDesk <3>Film NZ scrapped after review of govt's screen production grant By Suze Metherell July 23... more
16 Jul 2015 Property
Article - BusinessDesk 'Whipsaw' risk for Auckland house prices as Chinese economy slows By Pattrick Smellie July 16 ... more
13 Jul 2015 Property
Article - BusinessDesk Auckland house prices up 26% in June year, buyers looking further afield: REINZ By Tina Morrison July 13 ... more
21 Jul 2015 Migration
NZ net migration reaches new annual record in June, swelled by Indian, Chinese students July 21 (BusinessDesk) - New Zealand... more
23 Jul 2015 Travel & Tourism
Over $6 million from the Future Investment Fund will go towards expanding and modernising SmartGate at our borders to help manage ... more
15 Jul 2015 NZ Tourism
Minister welcomes Tourism Industry Association partnership A new partnership between the Department of Conservation and New ... more
24 Jul 2015 Rugby
James Broadhurst and Lima Sopoaga to make Test debuts ... more
23 Jul 2015 Opinion
The refusal by Minister Sam Lotu-Liga to hold Serco accountable for the company’s failings in prison management is bad... more
21 Jul 2015 Opinion
Gordon Campbell on John Key trying to talk up our - and China’s – ailing economy It wasn’t exactly... more
24 Jul 2015 Appointments
New Zealand Government Hon Christopher Finlayson Attorney-General 24 July 2015 Appointment of Queen’s Counsel Three... more
22 Jul 2015 Appointments
Al Monro replaces Sir Peter Maire on Callaghan Innovation board July 22 (BusinessDesk) - Al Monro has been appointed to the... more
16 Jul 2015 Press Releases
Declan Clancy says economic turmoil unlikely to see Greek workers fleeing to NZ One World Resourcing’s Declan Clancy is not... more
10 Jul 2015 Recruitment
July 10 (BusinessDesk) - Around two-thirds of workers would consider leaving their current job if offered a comparable one with... more