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

Shanghai trip to inspire New Zealand teachers

16 May 2016 News
Asia New Zealand Foundation Shanghai trip to inspire New Zealand teachers A group of teachers hailing from Invercargill to Whangarei... more

Highest ever percentage of women on state sector boards

16 May 2016 News
New Zealand Government Hon Louise Upston Minister for Women 15 May 2016 Highest ever percentage of women on state sector boards New... more

Business

NZ dollar tumbles vs Aussie after RBA minutes

17 May 2016 Business News By Johnathan Underhill
Tuesday 17 May 2016 05:10 PM NZ dollar tumbles vs Aussie after RBA minutes, extends slide on inflation outlook May 17 ... more

Emirates Team New Zealand partners with HP NZ

17 May 2016 Business News
HP New Zealand Media Alert Emirates Team New Zealand partners with HP NZ to drive performance in 35th America’s Cup Auckland, ... more

Living

Exhibition to Showcase Ashburton’s Migrant Community

16 May 2016 Lifestyle
Crossing The Bridge Exhibition to Showcase Ashburton’s Migrant Community 16 May 2016 A photography and film exhibition... more

Hunt for the Wilderpeople Takes Top Spot at the Box Office

16 May 2016 Entertainment
Taika Waititi’s Hunt for the Wilderpeople has cemented its place in the record books overtaking the 2010 Kiwi classic BOY... more

Property

Record annual profit for Kiwi Property

16 May 2016 Property
By Jonathan Underhill May 16 (BusinessDesk) - Kiwi Property Group, the country's biggest listed property investor by market value,... more

Record annual profit for Kiwi Property

16 May 2016 Property
Portfolio gain, rental income growth delivers record annual profit for Kiwi Property By Jonathan Underhill May 16 (BusinessDesk) -... more

Migration

Kiwis could be affected by tighter UK rules

30 Mar 2016 Migration By Audrey Young
British High Commissioner Jonathan Sinclair is defending changes to skilled migrant rules for Britain but suggests they won't affect... more

Immigrants' attitudes to corruption worries SFO

17 Feb 2016 Migration By Sophie Boot
Feb. 17 (BusinessDesk) - New Zealand's record inbound migration has undermined the country's squeaky-clean reputation because of an... more

Travel

Jucy plans to expand pod-style hotel chain to Australia

16 May 2016 NZ Tourism
Article - BusinessDesk Monday 16 May 2016 12:20 PM Jucy plans to expand pod-style hotel chain to Australia in 2017 By Fiona... more

Budget 2016: Cycle trail funding boosts regions

16 May 2016 NZ Tourism
New Zealand Government Rt Hon John Key Prime MinisterMinister of Tourism 15 May 2016 Media Statement Budget 2016: Cycle trail... more

Sport

New Zealand’s ‘other’ national sport has its time to shine

16 May 2016 Sport
Kids' Lit Quiz New Zealand’s ‘other’ national sport has its time to shine Monday, May 16 2016: There’s no... more

Panthers match huge success for Christchurch

16 May 2016 Rugby League
Chambers PR Penrith Panthers v NZ Warriors May 15, 2016 Panthers match huge success for Christchurch The sold-out Penrith Panthers... more

Columns

Gordon Campbell on NZ’s support for the Kazakh dictatorship

16 May 2016 Column
Column - Gordon Campbell   Gordon Campbell on New Zealand’s support for the Kazakh dictatorship Thanks to Sacha Baron... more

Gordon Campbell on the future of conservatism

12 May 2016 Opinion By Gordon Campbell
    For years, observers have noted the contrast between Prime Minister John Key’s ordinary Kiwi bloke persona, and... more

Kiwi Success

New appointments to Vulnerable Children’s Board

12 May 2016 Appointments
New Zealand Government Hon Anne Tolley Minister for Social Development 12 May 2016 New appointments to Vulnerable Children’s... more

University of Otago appoints next Dean of Pharmacy

28 Apr 2016 Appointments
University of Otago University of Otago appoints next Dean of Pharmacy A leading researcher from Canada has been appointed as the... more

Recruitment

Zero-hour contracts gone, PPL extended

10 Mar 2016 Recruitment
New Zealand Government Hon Michael Woodhouse Minister for Workplace Relations and Safety 10 March 2016 Zero-hour contracts gone, PPL... more

Scheme helping to staff hard to fill positions

28 Feb 2016 Recruitment
New Zealand Government Scheme helping to staff hard to fill positions Health Minister Jonathan Coleman says an incentive scheme... more