MARKET CLOSE: NZ shares rise, NZX 50 at 4-yr high 2 May 2012
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
New Zealand shares rose, pushing the NZX 50 Index to a four-year high, as the prospect of enduring low interest rates stoking demand for dividend yields. Telecom rose to a multi-year high and auction site Trade Me Group gained to a record.
The NZX 50 Index rose 37.653 points, or 1.1 percent, to 3614.97, the highest close since May 2008. Within the index, 32 stocks rose, 12 fell and six were unchanged. Turnover was $112 million.
Telecom, the biggest company on the exchange, rose 0.4 percent to $2.645, the highest since August 2008.
Telecom has a dividend yield of 11.3 percent while two-year bank term deposits are offering 4.84 percent on average, according to interest.co.nz. Reserve Bank Governor Alan Bollard has said the bank is unlikely to raise the official cash rate from a record low 2.5 percent any time soon.
"There has been a renewed buying interest in blue chip stocks - with the recent Reserve Bank comments creating good demand in higher yielding stocks," said Grant Williamson, director at Hamilton Hindin Greene. "Investors are starting to chase to higher dividend yields."
TrustPower, which has a dividend yield of 8.2 percent, rose 1.4 percent to $7.40.
Trade Me, which was taken public by owner Fairfax Media in December, rose 3.8 percent to $3.82. That compares with its issue price in December of $2.70. Trade Me has 2.96 million active members out of a total New Zealand population of 4.4 million and is the main reason global sites such as eBay haven't taken off.
"It just keeps going from strength to strength - its first financial result as a listed company was positive and it has given a lot of confidence to investors," Williamson said. "I just hope the market is not getting ahead of itself."
Fletcher Building, the biggest construction company on the bourse, rose 2.7 percent to $6.53, the highest since April 2.
Pyne Gould Corp, the finance company controlled by businessman George Kerr, rose 3 percent to 33 cents. The Financial Markets Authority said today it is looking into related party transaction at the firm after its auditors quit.
Auckland International Airport, the nation's busiest gateway, rose 1.8 percent to $2.58. Vector, the electricity and gas lines company, gained 2.3 percent to $2.73.
Heartland New Zealand, the building society that took over Marac Finance, fell 5.1 percent to 56 cents and was the biggest decliner on the NZX 50 today.
8 Feb 2017 Financial
7 Feb 2017 The Government's 2017 Budget will be delivered on Thursday 25 May, and will be centred on providing opportunities for all... more
8 Feb 2017 Business News
8 Feb 2017 A full cost-benefit analysis on Debt-to-Income (DTI) limits and public consultation will be conducted by the Reserve Bank... more
21 Nov 2016 Lifestyle
Emirates Team New Zealand EMIRATES TEAM NEW ZEALAND CLOSES IN 3rd POSITION THE LOUIS VUITTON AMERICA’S CUP WORLD SERIES
14 Nov 2016 Property
Article - BusinessDesk Monday 14 November 2016 10:28 AM NZ house prices gain 11% in October, driven by sales of higher value homes By... more
11 Nov 2016 Property
Article - BusinessDesk Thursday 10 November 2016 04:04 PM RBNZ sees pressures building in Auckland construction sector By Paul ... more
8 Feb 2017 Migration
7 Feb 2017 Immigration Minister Michael Woodhouse welcomes a report showing the vast majority of employers who take on seasonal... more
6 Feb 2017 NZ Tourism
8 Feb 2017 Does New Zealand celebrate halloween? Is Auckland a dangerous town- these are some of the subjects visitors Google... more
6 Feb 2017 Netball
6 Feb 2017 The Silver Ferns finished runners-up in the Netball Quad Series after completing a well-crafted 70-39 win over the SPAR... more
3 Feb 2017 Netball
The Silver Ferns completed a dominant outing to post a 61-37 win against the England Roses in their second match of the 2017 Netball... more
11 Nov 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the Gareth Morgan crusade First published on Werewolf more
10 Nov 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the US election outcome more
8 Feb 2017 Appointments
7 Feb 2017 Finance Minister Steven Joyce will appoint current Deputy Reserve Bank Governor Grant Spencer as the Acting Governor of... more
1 Feb 2017 Appointments
30 January 2017 Health Minister Jonathan Coleman has today appointed temporary Chairs to the boards of Canterbury and South... more
1 Feb 2017 Recruitment
1 Feb 2017 Tertiary Education, Skills and Employment Minister Paul Goldsmith has welcomed the record number of New Zealanders now in... more
8 Dec 2016 Recruitment
Hon. Paula Bennett, Hon. Michael Woodhouse, Hon. Louise Upston 24 November, 2016 The Government will update the Equa... more