MARKET CLOSE: NZ shares gain as yields appeal, RBA cuts rate   1 May 2012

New Zealand stocks rose as investors were drawn to stocks with relatively appealing dividend yields and after a bigger than expected rate cut in Australia, the biggest offshore market for companies including Fletcher Building and Pumpkin Patch.

The NZX 50 Index rose 21.44 points, or 0.6 percent, to 3577.31. Within the index, 29 stocks rose, 10 fell and 11 were unchanged. Turnover was a lower-than-average $76.4 million.

Fletcher, the nation's biggest construction group, rose 1.6 percent to $6.36. Reserve Bank of Australia Governor Glenn Stevens said today that housing prices have shown signs of stabilising although the market remains subdued. He cut the cash rate to 3.75 percent.

Telecom, the biggest company on the bourse, edged up 0.2 percent to $2.635, the highest since the spin-off of the Chorus network business last November. Telecom has a dividend yield of 11.4 percent.

"We have seen more money flow into higher yielding and top stocks - that trend has continued today," said Bryon Burke, head dealer at Craigs Investment Partners. "There has been a more positive outlook given good corporate results out of the US over the last week."

Pumpkin Patch, the children's clothing chain that counts Australia as its biggest market, rose 2 percent to $1.02.

Ryman Healthcare, the retirement village operator, rose 2.2 percent to $3.24, an all-time high.

Rakon, the GPS components maker, led the bourse higher, climbing 6.3 percent to 51 cents after it said it will tap businessman Peter Springford to join the board. Springford has considerable experience in China.

Chorus rose 2.9 percent to $3.43 after fund manager AMP Capital NZ was granted government approval to exceed the 10 percent shareholding cap. The fund manager can buy up to 15 percent of the telecommunications network company.

PGG Wrightson was the biggest decliner in the benchmark index, falling 5.1 percent to 37 cents.

Pyne Gould Corp, which holds a stake in Wrightson, fell 5.9 percent to 32 cents after the wealth manager's auditor, KPMG, quit amid different opinions over the level of disclosure required for related party transactions and the adequacy of the George Kerr-controlled company's governance.

Fast-food franchise operator Restaurant Brands dropped 1.5 percent to $2.02.

Vital Healthcare Property Trust shrank 1.2 percent to $1.23 after the healthcare building investor spent A$12.3 million buying a new hospital in Sydney.

Contact Energy was unchanged at $4.85 after the power company flagged a substantial boost to cash flow from 2014 after it shelved plans for its hydro-projects on the Clutha River indefinitely.

(BusinessDesk)

Add a comment

Bookmark and Share

News

Small businesses urged to value and protect IP

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

Labour will not support TPP if it undermines NZ sovereignty

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

Business

MARKET CLOSE: NZ shares extend fall on OCR disappointment

24 Jul 2015 Business News
Article - BusinessDesk   MARKET CLOSE: NZ shares extend fall on OCR disappointment; Meridian, Genesis drop By Suze ... more

New health and safety rules relaxed for small businesses

24 Jul 2015 Business News
Article - BusinessDesk   New health and safety rules relaxed for small businesses By Pattrick Smellie July 24 (BusinessDesk) -... more

Living

Film NZ scrapped after screen production grant review

23 Jul 2015 Entertainment
Article - BusinessDesk <3>Film NZ scrapped after review of govt's screen production grant By Suze Metherell July 23... more

Awards to recognise the stars of NZ recreation

21 Jul 2015 Lifestyle
Nominations are open for the annual New Zealand Recreation Association (NZRA) Awards, recognising innovative and inspiring... more

Property

'Whipsaw' risk for Auckland house prices as China slows

16 Jul 2015 Property
Article - BusinessDesk   'Whipsaw' risk for Auckland house prices as Chinese economy slows By Pattrick Smellie July 16 ... more

Auckland house prices up a record 26% in June year: REINZ

13 Jul 2015 Property By Tina Morrison
Article - BusinessDesk Auckland house prices up 26% in June year, buyers looking further afield: REINZ By Tina Morrison July 13 ... 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

SmartGates to more than double

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

Minister welcomes Tourism Industry Association partnership

15 Jul 2015 NZ Tourism
Minister welcomes Tourism Industry Association partnership A new partnership between the Department of Conservation and New ... more

Sport

All Blacks team named for Test against South Africa

24 Jul 2015 Rugby
James Broadhurst and Lima Sopoaga to make Test debuts                  ... more

Impressive opening for new-look Silver Ferns

24 Jul 2015 Netball
The versatility of the Silver Ferns line-up shone through when they completed an impressive 91-31 win over the Fiji Pearls in the... more

Columns

Gordon Campbell on the dogged reluctance to condemn Serco

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

Gordon Campbell on Key talking up our - and China's - economy

21 Jul 2015 Opinion
  Gordon Campbell on John Key trying to talk up our - and China’s – ailing economy It wasn’t exactly... more

Kiwi Success

Appointment of Queen’s Counsel

24 Jul 2015 Appointments
New Zealand Government   Hon Christopher Finlayson Attorney-General 24 July 2015 Appointment of Queen’s Counsel Three... more

Al Monro replaces Sir Peter Maire at Callaghan Innovation

22 Jul 2015 Appointments By Fiona Rotherham
  Al Monro replaces Sir Peter Maire on Callaghan Innovation board July 22 (BusinessDesk) - Al Monro has been appointed to the... more

Recruitment

Economic turmoil unlikely to see Greek workers fleeing to NZ

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

2/3s of workers would quit for more flexible work: survey

10 Jul 2015 Recruitment By Fiona Rotherham
July 10 (BusinessDesk) - Around two-thirds of workers would consider leaving their current job if offered a comparable one with... more