NZX listings ‘worth serious consideration’, AMP Capital says 26 Oct 2011
- MARKET CLOSE: NZ shares rise as Fonterra Fund rebounds Business
- NZ dollar gains vs. Australian dollar on iron ore weakness Business
- Failed Feltex case costs litigation funders $3.1M in costs Business
- NZ crossbred wool falls to two-month low Business
- Increase in business R&D spend welcomed News
- Oil Free Wellington Delivers Message to Norwegian Consulate News
- Inflation target at 2% risks overheated economy, BNZ says Business
- NZ milk powder futures drop as Fonterra lifts GDT volumes Business
- Hallenstein lifts profit 40% as it claws back market share Business
- GIC-Goodman Property JV to extend Auckland CBD footprint 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 Mar 2015 News
Foreign Minister Murray McCully travelled to Baghdad yesterday for talks with Iraq’s Prime Minister Mr Haider al-Abadi... more
23 Mar 2015 Business News
NZ-Korea FTA signed amid spying, lost sovereignty claims March 23 (BusinessDesk) - A long-awaited free trade agreement... more
23 Mar 2015 Business News
2degrees acquires Snap ISP for complete business offering March 23 (BusinessDesk) - 2Degrees, New Zealand's third-largest mobile... more
13 Mar 2015 Lifestyle
Fusing light, music, mobile and one of Auckland’s most recognisable landmarks together – 2degrees launched another Kiwi... more
12 Mar 2015 Property
NZ house prices rise 3.6% in February, led by a 14% jump in Auckland prices March 12 (BusinessDesk) - New Zealand residential... more
2 Mar 2015 Migration
Prime Minister John Key says he is not aware of any suspected war criminals from the former Yugoslavia in New Zealand. The claim that... more
17 Mar 2015 Travel & Tourism
Associate Transport Minister Craig Foss is welcoming a move by the rental vehicle industry to establish a Code of Best Practice to... more
6 Mar 2015 Travel & Tourism
Sustainable workforce solutions were at the centre of discussions between Government Ministers and tourism industry representatives... more
24 Mar 2015 Cricket
New Zealand beats South Africa by four wickets. In... more
24 Mar 2015 Cricket
Ahead of the first semi-final in the land of rugby, all talk is about cover drives and yorkers
24 Mar 2015 Column
Gordon Campbell on Pacific spying, Obama as Spock and Kendrick Lamar So New Zealand has using the GCSB to spy on its friends ... more
23 Mar 2015 Column
Both teams are playing with confidence and one look at the talent on show on either side means it has the potential to be a classic,... more
18 Mar 2015 Appointments
Tower names Seniors Money's Brett Wilson as CFO, replacing Boggs March 18 (BusinessDesk) - Tower, the listed general insurer,... more
6 Mar 2015 People
Glassjar, the kiwi software start-up whose app provides people an easy way of sharing bills, has launched in the United States. The... more
20 Mar 2015 Recruitment
RESEND: Warehouse says 63% of permanent staff now on 'career retailer wage' (Fixes fourth paragraph to show Warehouse is... more