MARKET CLOSE: NZ shares rise to record, led by Pacific Edge 27 Aug 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 rise to record as investors hunt yield, led by Pacific Edge
By Suze Metherell
Aug. 27 (BusinessDesk) - New Zealand shares rose to a record as Pacific Edge won a contract with US healthcare provider Kaiser Permanente and Genesis Energy posted earnings that beat its prospectus adding to the appeal of a market that's luring investors in search of yield.
The NZX 50 Index rose 48.070 points, or 0.9 percent, to a record 5243.7, following on from Wall Street's S&P 500 Index closing above the 2,000 mark for the first time. Within the index, 29 stocks rose, 12 fell and nine were unchanged. Turnover was $98 million.
Pacific Edge led the benchmark index higher up 8.1 percent to a near two-month high of 80 cents after the Dunedin-based biotech company said Kaiser Permanete, which has over 9 million healthcare users in the US, would trial its non-invasive bladder cancer detecting test, Cxbladder. The company is forgoing profit as it chases $100 million in annual revenue from the US market in the next five years.
"Kaiser is really regarded as the 'gold standard' healthcare network in the US," said Matthew Goodson, managing director at Salt Funds Management. "It is a real endorsement of Pacific Edge."
Genesis Energy rose 3.1 percent to $1.815 after New Zealand’s largest energy retailer posted a 53 percent drop in full-year profit to $49.2 million, beating its prospectus forecast. The decline in earnings reflected lower wholesale electricity prices, reduced electricity generation and lower retail electricity and gas sales volumes, but the company said it was on track to meet its targets for 2015 even in the face of heightened retail competition.
"It beat its prospectus numbers, although that was really on Kupe gasfield rather than the electricity business. Their guidance looks a little light, relative to market expectations but I think there is a sense that's a fairly conservative outlook," Goodson said. "The stock had been sold down aggressively, certainly relative to the other listed electricity names, ahead of its result so I think people were expecting worse than what was actually turned in."
Stocks with strong dividend yields supported the gain on the benchmark index as investor sought returns on their investments in a global market where interest rates are at historic lows. Spark New Zealand, whose shares have a dividend yield of 6.1 percent, climbed 3.4 percent to a six-year high of $3.04. Goodman Property Trust, which has a dividend yield of 5.9 percent, rose 2.3 percent to $1.13. Argosy Property, which offers a dividend yield of 5.9 percent, advanced 0.5 percent to $1.015. Vital Healthcare Property Trust, whose units offer a 5.6 dividend yield, increased 4.2 percent to a record $1.48.
"In a world of low interest rates it is people chasing yield that's what's driving Spark, and indeed what's driving the whole listed property sector," Goodson said.
Air New Zealand advanced 1.2 percent to $2.175 after the government-controlled national carrier boosted annual profit 45 percent to $262 million, on increased passenger numbers and capacity, and said it will pay out 20 cents per share this year, half of which came in an unexpected special dividend of 10 cents per share.
Ebos Group climbed 1.5 percent to $9.59 after the healthcare and animal care manufacturer trebled annual profit to $92.1 million on a full 12-month contribution from the Symbion pharmaceutical wholesaler and distributor in Australia.
Units in Fonterra Shareholders' Fund rose 0.2 percent to $6.13. Fonterra Cooperative Group announced plans to enter a joint venture with China's Beingmate that will own the dairy giant's Darnum plant in Australia and produce infant formula products for the Chinese market, for a total investment of $615 million. In a separate statement today, it said invest $555 million to build a 4.4 million litres a day drier at Lichfield in South Waikato while adding three new plants at its Edendale site in Southland boosting its production capacity. The units give holders access to the coop's dividend stream.
Outside the benchmark index, Smiths City Group climbed 8 percent to 53 cents, after a report by Edison Investment Research said the furnishing and appliance store's plans to expand to the North Island hold promise, and the stock is undervalued relative to its peers.
TeamTalk fell 4.1 percent to $1.63 after the listed telecommunications company posted a full-year loss of $8.3 million, from a year earlier profit of $3.6 million, after writing down goodwill on its Farmside rural unit, a charge that required the cooperation of its lender to avoid a covenant breach.
On the NZ Alternative Index, Snakk Media jumped 21 percent to 9.3 cents after the company, which matches advertisers with mobile users, said first quarter sales rose 67 percent to $2 million and it has hired an Australian consultancy firm as it mulls an ASX listing.
(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