MARKET CLOSE: NZ shares gain on global rally; Diligent rises   16 Apr 2014

Suze Metherell

 

MARKET CLOSE: NZ shares gain on global rally; Diligent, Pacific Edge lead gain

April 16 (BusinessDesk) - New Zealand stocks joined a global rally as US company earnings growth lifted sentiment for equity markets. Diligent Board Member Services led the benchmark index higher after reporting first-quarter sales growth. Pacific Edge and Skellerup Holdings paced gains.

The NZX 50 Index rose 14.264 points, or about 0.3 percent, to 5090.549. Within the index, 27 stocks rose, nine fell and 14 were unchanged. Turnover was $117.5 million.

Wall Street rose for a second day after Coca Cola Co posted 2 percent growth in global sales, while the world’s biggest health-care products maker, Johnson & Johnson, said first quarter profit rose 34 percent. Signs of corporate earnings growth helped extend a rally into Asia, where Japan’s Nikkei 225 Index rose 2.5 percent, Australia’s S&P/ASX 200 advanced 0.6 percent and Hong Kong’s Hang Send lifted 0.3 percent.

Diligent climbed 9.9 percent to $4.45 after the governance app maker posted quarterly figures which showed better growth didn’t slow as much as feared in the US market.

Pacific Edge, the Dunedin-based biotech company, rose 7.5 percent to $1.15 while Skellerup, the industrial rubber goods maker, advanced 2.9 percent to $1.75.

The Coca Cola and Johnson & Johnson results are “flowing through and restoring confidence” in equities, said Robert Garden, investment adviser at Craigs Investment Partners. “Investors are really wanting fundamental figures to come through from individual stocks and economic reports from various places around the globe to justify where share prices have run too.”

New Zealand tech stocks were caught up in a global sell off over the past month as investors questioned the ability of companies to deliver the profits implied in their high valuations. Big movements in the tech-heavy Nasdaq Composite Index on Wall Street have echoed through the local stock market.

Xero, the cloud-based accounting software firm, fell for the fifth consecutive day, down 1.4 percent to $2.45.

“Out of all of the tech stocks, Xero is the one that’s struggling to have a bit of a bounce,” Garden said. “In terms of valuation it may have the most to come off.”

“The difficult part is putting the correct valuation on them,” he said, referring to the tech sector.

Tech stocks outside the benchmark index rose. SLI Systems, the search engine developer, advanced 3.1 percent to $1.97. Security software firm Wynyard Group climbed 3 percent to $2.40 while GeoOp, the small business task management app maker, gained 4.8 percent to $1.32.

Energy stocks were mixed before Genesis Energy, the last company in the government’s partial privatisation programme, begins trading on the NZX tomorrow. The sale was scaled back, meaning investors didn’t get all the stock they were after.

MightyRiverPower advanced 1.2 percent to $2.185. Contact Energy climbed 0.6 percent to $5.50, while Meridian Energy fell 0.4 percent to $1.155. Auckland lines company Vector fell 1.2 percent to $2.45.

“The market is looking forward to Genesis tomorrow, including myself,” Garden said. “There may be some that are frustrated with what they’ve got and make the decision they’re going to top up or exit if the price opens up at attractive levels.”

Telecom slipped 0.6 percent to $2.65. Fletcher Building, New Zealand’s largest listed company, rose1.2 percent to $9.71 and Auckland International Airport advanced 0.3 percent to $3.94.

(BusinessDesk)

 

Add a comment

News

Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students

29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more

New Zealand reaffirms support for Flight MH17 judicial process

7 Mar 2020 News By Rt HON WINSTON PETERS
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more

Business

NZ Government's Economic package to fight COVID-19

17 Mar 2020 Business News By RT HON JACINDA ARDERN
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more

NZ Government announces aviation relief package

19 Mar 2020 Business News By Hon Phil Twyford
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more

Living

Diversity was Key at New Zealand Trade Tasting in London

6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall. It was the first... more

Kiwi author stuns Behind the Butterfly Gate

12 Jan 2022 Arts By Charlotte Everett
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...  New Zealand writer Merryn Corcoran’s... more

Property

Fairer rules for tenants and landlords

17 Nov 2019 Property By Minister Kris Faafoi
17 NOVEMBER 2019 The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more

New Zealand Government will not implement a Capital Gains Tax

17 Apr 2019 Property By RT HON JACINDA ARDERN
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more

Migration

Boosting border security with electronic travel authority – now over 500,000 issued

19 Nov 2019 Migration By Hon Iain Lees-Galloway
19 NOVEMBER 2019 We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more

Christchurch reinstated as refugee settlement location

18 Aug 2018 Migration
18 AUGUST 2018 HON IAIN LEES-GALLOWAY The announcement that Christchurch can once again be a settlement location for refugees... more

Travel

Gallipoli Anzac Day services cancelled

19 Mar 2020 Travel & Tourism By RT HON JACINDA ARDERN
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more

New Zealanders advised not to travel overseas

19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas more

Sport

The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners

27 Oct 2019 Cricket By Charlotte Everett
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more

PREVIEW: All Blacks v England semi-final

26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade First published on Werewolf The ghastly likes of Marine Le Pen in France and Geert ... more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome Well um.. on the bright side, there (probably)... more

Kiwi Success

Congratulations to Loder Cup winner

26 Sep 2018 People By Hon Eugenie Sage
25 SEPTEMBER 2018 The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more

Appointments to New Zealand National Commission for UNESCO

16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO HON JENNY SALESA Associate Education Minister Jenny Salesa is... more

Recruitment

Historic pay equity settlement for education support workers

14 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more

Historic pay equity settlement for education support workers

22 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more