MARKET CLOSE: NZ shares rise in light trading, led by Xero 29 Dec 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
By Paul McBeth
Dec. 29 (BusinessDesk) - New Zealand shares rose to a record close in light holiday trading, led by companies that have been sold off in recent months, including Xero and Nuplex Industries. Infratil declined after it announced plans to buy Australian retirement village operator RetireAustralia with the New Zealand Superannuation Fund.
The NZX 50 Index advanced 34.912 points, or 0.6 percent, to 5592.329. Within the index, 37 stocks gained, seven fell, and six were unchanged. Turnover was a lighter than usual $63.2 million.
Shares of Xero rose 4.2 percent to $16.25, leading the benchmark index higher. The software developer's share price peaked at $44.98 in March, but has since fallen off as investors question its ability to break into the US market. The stock has dropped 52 percent this year. Nuplex gained 2.8 percent to $2.92, having declined 16 percent this year, while Guinness Peat Group advanced 2.4 percent to 43 cents, and was down 29 percent this year.
"There's some reasonable movements, but on pretty small volumes," said James Lindsay, who helps manage about $400 million in equities at Nikko Asset Management in Auckland. "The big movers on the day have been under pressure."
Among other gainers were New Zealand Oil & Gas up 4 percent to 62 cents, A2 Milk Co, which rose 3.6 percent to 58 cents and Diligent Board Member Services, which advanced 2.8 percent to $5.14.
Infratil fell 0.7 percent to $3.01 after it announced plans to buy RetireAustralia for A$640.2 million with the NZ Super Fund as it looks to tap into the ageing demographic and under-utilised sector across the Tasman. The price represents an earnings multiple of 18 times, which compares favourably to New Zealand operators, such as Metlifecare at 21.4 times, Summerset Holdings at 28 times and Ryman Healthcare at 35.4 times.
Nikko's Lindsay said Infratil manager HRL Morrison & Co has been building its expertise in the segment since it took a cornerstone stake in local retirement village operator Metlifecare, and wasn't a surprise that the firm was interested in the Australian market.
"The return dynamics are probably better in Australia than they are in New Zealand, even though they are pretty good here," he said.
Shares of Ryman increased 0.5 percent to $8.49, while Summerset gained 0.7 percent to $2.87 and Metlifecare rose 0.6 percent to $4.71.
Kathmandu Holdings fell 0.5 percent to $2.13 after the shares slumped last week when the outdoor equipment chain warned of slowing sales growth in Australia.
SkyCity Entertainment Group increased 0.3 percent to $3.79. The hotel and casino operator last week revised up the forecast cost of building an international convention centre in downtown Auckland by as much as $130 million.
Fletcher Building, the biggest listed company, declined 0.5 percent to $8.30 and Spark New Zealand rose 0.8 percent to $3.125.
DNZ Property Fund was the biggest decliner on the day, down 1 percent to $1.93.
Outside the benchmark index, Mowbray Collectibles was unchanged at 26 after the auction house secured financing from Bank of New Zealand for its Peter Webb Galleries unit.
Sealegs Corp dropped 17 percent to 10 cents, adding to its Christmas Eve decline when it was fined and censured by the New Zealand Markets Disciplinary Tribunal after failing to maintain the minimum number of independent directors on its board.
(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