MARKET CLOSE: NZ shares fall; Meridian, MRP, DNZ drop   4 Mar 2015

Article - BusinessDesk

 

MARKET CLOSE: NZ shares fall; Meridian, MRP, DNZ drop on weakening yield demand

By Suze Metherell

March 4 (BusinessDesk) - New Zealand shares fell, led by Meridian Energy and MightyRiverPower as demand abated for companies with dependable dividend streams. Warehouse Group rose ahead of reporting its earnings this week.

The NZX 50 Index fell 19.579 points, or 0.3 percent, to 5874.082. Within the index, 22 stocks fell, 19 rose and nine were unchanged. Turnover was $156 million.

Overnight bond yields rally, as investors bet on the US economy recovery and the Federal Reserve lifting interest rates in the world's largest economy sooner rather than later. The local bourse has gained 5.8 percent since the start of the year, as traders sought income paying equities, like utility companies and property investors, in a low interest rate environment.

Meridian dropped 2.5 percent to $2.13. MRP fell 2.4 percent to $3.30. DNZ Property Fund declined 2 percent to $1.94. Goodman Property Trust slipped 1.3 percent to $1.17.Precinct Properties New Zealand fell 0.8 percent to $1.19. Kiwi Property Group decreased 0.8 percent to $1.315.

"New Zealand has had a great run as a market as people have sought high yielding equities globally," said Shane Solly, director at Harbour Asset Management. "We've got a market that tends to be relatively low, because of the waiting we have to the gen-tailers in particular, we tend to have quite a low earnings growth environment so certainly the market is being priced at quite high levels to that earnings growth."

Warehouse was the best performer on the day rising 2.8 percent to $2.90. New Zealand's largest listed retailer is due to report its financial statements this Friday, after flagging unseasonal weather hit pre-Christmas sales. James Pascoe, the investment group owned by the Norman family, lifted their stake to 16.4 percent yesterday, buying out Australian grocery store chain, Woolworths 8.8 percent stake.

"It shores up the register it doesn't necessarily mean that profitability is going to improve but does sure up the share register," Solly said.

Spark New Zealand, formerly Telecom Corp, was unchanged at $3.29 after announcing it has agreed to sell its Telecom Rentals business for $106 million to Australian financial services company FlexiGroup.

NZX rose 0.9 percent to $1.16. The stockmarket operator said the volume and value of cash trading on New Zealand's share market rose last month, snapping a decline a month earlier, and helped push the value of the local equity market above $100 billion. Separately, it named First NZ Capital as the first brokerage to agree to be a market maker for its yet-to-be-launched NXT market for small and medium-sized companies.

(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