MARKET CLOSE: NZ shares gain; Chorus, Telecom lead NZX 50   14 Jun 2012

New Zealand shares rose, pushing the NZX 50 Index up 1 percent, led by gains in network company Chorus and Telecom and as some investors bet Sky City Entertainment Group will eventually get its convention hall-for-slots deal.

The NZX 50 rose 34.35 points, or 1 percent, to 3416.08. Within the index, 23 stocks gained, 15 fell and 12 were unchanged. Turnover was $113 million.

Shares rose after the Reserve Bank kept the official cash rate at a record low 2.5 percent and hinted that economic headwinds are sufficiently strong to keep interest rates lower for longer.

The MPS “was largely expected so I don’t think it’s had much effect on our market,” said Craig Brown, senior investment analyst at One Path New Zealand.

Shares in Sky City, the Auckland-based casino and hotel company, rose 1.8 percent to $3.41. The deputy auditor-general Phillippa Smith yesterday announced an investigation into a proposal to build a convention centre in Auckland in exchange for more pokie machines. The deal has been met with criticism from opposition parties.

“Sky City has indicated they have got the preferred status for the convention centre," Brown said. "They will just be going through the process so they can ensure they get what they need for shareholders."

OceanaGold, which operates the Macraes gold field, rose 2.3 percent to $2.73. The stock has seesawed along with the price of gold and the historically high New Zealand dollar.

“It’s not a deep market for the stock so it can bounce around – it doesn’t reflect anything coming out of the company,” Brown said.

Chorus, New Zealand's largest fixed line telecommunications network operator was the biggest gainer on the NZX 50, rose 4 percent to $3.15. That was followed by a 3 percent rise in Telecom, the biggest company on the NZX 50 Index at $2.40. The two companies demerged in November last year.

Goodmans Property Trust, which owns the Highbrook Business Park in Auckland, led the decline down 2.70 percent to 0.72 cents.

Guinness Peat Group rose 1.1 percent to 45.5 cents. The company is selling its stake in Young & Co brewery in an accelerated book build for a targeted 54.1 million pounds, according to a stock exchange notice in London, after the close of trading on the NZX.

Fisher & Paykel Healthcare, which gets more than 50 percent of its revenue in US dollars, rose about 3 percent to $2.07. Freightways gained 2.5 percent to $3.65 and Ryman healthcare rose 2.1 percent to $3.40.

NZ Farming Systems Uruguay, the South American dairy farmer controlled by Singapore’s Olam International, was unchanged at 54 cents and has fallen 17 percent this year. The company said today will miss its target to break even on a pretax basis this year after dry weather stunted pasture growth and milk output.

(BusinessDesk)

Add a comment

Bookmark and Share

News

2017 Budget to be presented on 25 May

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

Conservation efforts underway on Scott Statue

6 Feb 2017 Environment
9 Feb 2017 A hundred years on from its unveiling, conservation efforts are underway to repair and reinstate the white marble statue of... more

Business

Finance Minister requests cost-benefit analysis on DTIs

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

Korean FTA delivers new round of tariff cuts

18 Jan 2017 Business News
8 JANUARY, 2017More local businesses looking to expand into Korea will benefit from the latest round of tariff reductions under the... more

Living

3rd Position, Louis Vuitton America’s Cup World Series

21 Nov 2016 Lifestyle
Emirates Team New Zealand EMIRATES TEAM NEW ZEALAND CLOSES IN 3rd POSITION THE LOUIS VUITTON AMERICA’S CUP WORLD SERIES more

Arts Foundation Award recipients for 2016

14 Nov 2016 Lifestyle
The Arts Foundation Next generation of internationally acclaimed talent among the Arts Foundation Award recipients for 2016Under ... more

Property

NZ house prices gain 11% in October

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

RBNZ sees pressures building in Auckland construction sector

11 Nov 2016 Property By Paul McBeth
Article - BusinessDesk Thursday 10 November 2016 04:04 PM RBNZ sees pressures building in Auckland construction sector By Paul ... more

Migration

Recognised Seasonal Employers employ more Kiwis

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

Good progress on investment attraction strategy

8 Dec 2016 Migration
Economic Development Minister Steven Joyce has welcomed news that New Zealand is attracting a higher level of quality international... more

Travel

Weirdest things visitors Google before coming

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

New campaign to get more Aussies to Northland

30 Jan 2017 Travel & Tourism
30 January 2017 A new marketing campaign starting this week to attract Australians to Northland is an excellent approach to... more

Sport

Silver Ferns wrap up Quad Series with big win

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

Silver Ferns bounce back against England February 3, 2017

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

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the Gareth Morgan crusade First published on Werewolf more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome more

Kiwi Success

Spencer to be Acting Governor of Reserve Bank

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

Temporary Chairs appointed to Canterbury and South Canterbury DHB

1 Feb 2017 Appointments
30 January 2017 Health Minister Jonathan Coleman has today appointed temporary Chairs to the boards of Canterbury and South... more

Recruitment

Record number of people in employment

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

NZ Government accepts recommendations on pay equity

8 Dec 2016 Recruitment
Hon. Paula Bennett,  Hon. Michael Woodhouse, Hon. Louise Upston 24 November, 2016 The Government will update the Equa... more

s