NZX listings ‘worth serious consideration’, AMP Capital says   26 Oct 2011

Article - BusinessDesk

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.

(BusinessDesk)

Add a comment

Bookmark and Share

News

10 year passports will be delivered early

24 Aug 2015 News
10 year passports will be delivered early Internal Affairs Minister Peter Dunne today welcomed the Government Administration Select ... more

One month left for councils to get digital enablement plans sorted

19 Aug 2015 News
New Zealand Government Hon Amy AdamsMinister for Communications 19 August 2015 Local authorities have four more weeks to submit a... more

Business

NZ dollar bounces from six-year low

25 Aug 2015 Business News By Paul McBeth
Article - BusinessDesk   NZ dollar bounces from six-year low after market volatility takes a breather By Paul McBeth Aug. 25 ... more

Economists gloomy about how far dairy prices will recover

24 Aug 2015 Business News By Fiona Rotherham
  Economists gloomy about how far dairy prices will recover Aug. 24 (BusinessDesk) - The outlook for dairy prices remains dire... more

Living

It’s Snoopy’s Birthday!

10 Aug 2015 Entertainment
20th Century Fox is celebrating Snoopy’s birthday ahead of the release of the first animated Peanuts movie SNOOPY AND CHARLIE... more

NZ's Sola Rosa Sound System heads to London - interview with Andrew Spraggon

6 Aug 2015 Entertainment By Charlotte Everett
Sola Rosa Sound System comes to London on 20 August – NZNewsUK London Editor Charlotte Everett had a chat with frontman Andrew... more

Property

Auckland house price growth stalls in July: Barfoot

5 Aug 2015 Property By Tina Morrison
  Auckland house price growth stalls in July as properties 'fully priced', Barfoot says Aug. 5 (BusinessDesk) - Auckland house... more

Site purchased for Pt Chevalier Kindergarten

31 Jul 2015 Property
New Zealand Government   Hon Nikki Kaye Associate Minister of Education   31 July 2015   Site purchased for Pt... more

Migration

NZ net migration reaches new annual record in June

21 Jul 2015 Migration By Paul McBeth
  NZ net migration reaches new annual record in June, swelled by Indian, Chinese students July 21 (BusinessDesk) - New Zealand... more

NZ migration rises to new annual record in May

22 Jun 2015 Migration By Suze Metherell
  NZ migration rises to new annual record in May, closing in on Treasury's upside scenario June 22 (BusinessDesk) - New Zealand... more

Travel

Air NZ to continue alliance with Cathay Pacific

25 Aug 2015 Travel & Tourism By Joshua Riddiford
Air NZ to continue alliance with Cathay Pacific, targets Asian tourists Aug. 25 (BusinessDesk) - Air New Zealand's has had its... more

Partnerships push New Zealand’s profile abroad

25 Aug 2015 NZ Tourism
25 August 2015 Campaigns promoting New Zealand as an outstanding visitor destination reached more than 1.2 billion people globally... more

Sport

Ahio's Bout to Be Broadcast to 40 Million People

19 Aug 2015 Sport
Kiwi heavyweight sensation, Hemi Ahio, is calm and focused ahead of his Australian television debut on Danny Green's undercard in... more

NWC2015: Silver Ferns fall just short in World Cup final

16 Aug 2015 Netball
 Australia claimed a third successive World Cup title when holding out a fast-finishing Silver Ferns 58-55 in the Netball World... more

Columns

Gordon Campbell on the flag campaign

25 Aug 2015 Opinion
Gordon Campbell on the flag campaign So far, the public has treated the government’s flag campaign with something between... more

Gordon Campbell on Donald Trump, and Dr Dre

19 Aug 2015 Opinion
Gordon Campbell on Donald Trump, and Dr Dre   For the past few months, you, me, and Rupert Murdoch have been waiting for the... more

Kiwi Success

Former cricketer Simon Doull signs with NZME

19 Aug 2015 Appointments
Former cricketer and established broadcaster Simon Doull signs with NZME 19 August 2015 – New Zealand Media and Entertainment... more

New ECan commissioner appointed

6 Aug 2015 Appointments
Elizabeth Cunningham has been appointed as a commissioner at Environment Canterbury (ECan), Environment Minister Dr Nick Smith and... more

Recruitment

Eleven straight quarters of job growth

5 Aug 2015 Recruitment
The latest labour market data shows continued job growth, with 7,000 more people employed over the last quarter and 69,000 more New ... more

NZ unemployment rate rises to 5.9% on weaker jobs growth

5 Aug 2015 Recruitment By Paul McBeth
NZ unemployment rate rises to 5.9% as jobs growth lags behind growing population Aug. 5 (BusinessDesk) - New Zealand's jobless rate... more