MARKET CLOSE: NZ shares gain, led by Xero 25 Jul 2014
Related articles
- 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
MARKET CLOSE: NZ shares gain, led by Xero
By Tina Morrison
July 25 (BusinessDesk) - New Zealand shares rose, led by Xero after investors gained confidence about the cloud-based accounting software firm's US expansion plans following upbeat comments at the company's annual meeting this week.
The NZX 50 Index rose 19.556 points, or 0.4 percent, to 5,194.268. Within the index 21 stocks rose, 18 fell and 11 were unchanged. Turnover was $121 million.
Xero advanced 5.7 percent to $25.90. The stock has gained 9.8 percent since its annual general meeting in Wellington on Wednesday when chief executive Rod Drury was upbeat about the company's prospects in the US, where it faces a battle with the incumbent accounting software provider Intuit. Drury belaboured not only a belief that Xero's cloud-based product suite is outgunning Intuit's attempts to move into the cloud, but also that the company will benefit from establishing strong positions in the Australian and UK markets before embarking on the US.
"Post their AGM, Xero has continued to improve," said Grant Williamson, a director at brokerage Hamilton Hindin Greene. "The AGM presentation just gave investors a little bit more confidence that the company is on the right track, particularly in America, so that's created a bit of buying in the stock."
Telecom Corp, New Zealand's largest telecommunications provider, rose 0.7 percent to $2.954, its highest level since May 2008. The stock has gained 9.6 percent so far this month as investors favour yield stocks over growth stocks in anticipation the Reserve Bank will keep interest rates on hold for a period after hiking the benchmark yesterday for its fourth consecutive meeting this year.
"Telecom continues to grind its way higher," said Williamson. "That's been one of the better performing stocks in recent times. Investors now realise that interest rates are not going to go up too much more in the short term and therefore they are starting to come back and look at yield stocks on the market."
Demand for yield is pushing up property stocks and weakening growth stocks such as retirement village operators, Williamson said.
Kiwi Income Property Trust gained 1.3 percent to $1.195, Precinct Properties New Zealand rose 1.4 percent to $1.11, Property For Industry increased 1.1 percent to $1.36 and Goodman Property Trust advanced 0.5 percent to $1.075.
"Investors are turned off a little bit by the higher risk growth stocks and are now really looking more towards the defensive income stocks," said Williamson. "Retirement village stocks are under a bit of pressure as well mainly because they don't pay much in the way of income, they are considered growth stocks. We are seeing investors making a bit of a switch from growth to income."
"It is really an interest rate story with the Reserve Bank saying we will pause and review things a bit later on," he said. "Investors have come to the conclusion that in the short term, interest rates don't go any higher."
Ryman Healthcare slipped 1 percent to $8.06, while Metlifecare fell 2.1 percent to $4.19 and Summerset Group Holdings was unchanged at $3.12.
Meanwhile, debut stock Scales Corp closed weaker at $1.58, having first traded at $1.61, largely flat compared to the fruit and logistics company's $1.60 IPO price. Some 2.7 million shares of the company’s 139.8 million shares on issue changed hands.
"It was a pretty muted first day trading," said Williamson, adding the company is probably affected by some IPO fatigue in the market and current sentiment favouring defensive stocks rather than riskier companies such as Scales whose apple growing operations could be affected by weather and growing conditions.
Port of Tauranga rose 0.3 percent to close at a record high $15.85 as investors acquired more of the utility stock after it said earlier this month it had won a slot in Maersk's Southern Star service from Ports of Auckland, cementing its place as New Zealand's biggest container port.
(BusinessDesk)
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
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
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
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
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
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
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
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
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
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
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
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
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more