MARKET CLOSE: NZX 50 rises to record led by Genesis on yield 6 Mar 2015
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: NZX 50 rises to record led by Genesis on yield hunt
By Suze Metherell
March 6
(BusinessDesk) - New Zealand shares rose led by Genesis
Energy and paced by Spark New Zealand, as the international
hunt for income paying investment returned. Warehouse Group
fell after it cut its forecast for the annual dividend.
The NZX 50 Index rose 46.293 points, or 0.8 percent,
to a fresh record of 5903.065. Within the index, 30 stocks
rose, 10 fell and 10 were unchanged. Turnover was $156
million.
The relatively high dividend yield of the
local bourse has lured investors, in a globally low interest
rate environment. Utilities, property investors and
telecommunication companies rose. Genesis advanced 2.4
percent to $2.335. Spark, formerly Telecom Corp, gained 1.5
percent to $3.30. Contact Energy gained 1.2 percent to
$6.13. Precinct Properties New Zealand increased 0.8 percent
to $1.205.
"There is a huge yield trade globally,"
said Matthew Goodson, managing director at Salt Funds
Management. "The main impetus for the yield trade really has
been the collapse in bond yields, globally."
Warehouse
was the worst performer on the benchmark index today falling
4.1 percent to $2.79. New Zealand's largest listed retailer
lowered its forecasts for annual profit and dividends, while
posting a 19 percent drop in adjusted first-half profit to
$37.2 million, as its Red Sheds and Noel Leeming units
missed expectations. The retailer had promised to keep its
annual dividend payment at a minimum of 19 cents per share
as it transitioned to a lower payout rate over two years,
but today abandoned that policy, forecasting a 16cps
full-year dividend.
"The dividend was cut, and
certainly when they raised equity last year a wee bit was
made of the dividend they might be able to pay," Goodson
said. "It certainly gives a view of the board of Warehouse
as to their earnings outlook and the strength of their
balance sheet."
Meridian Energy rose 2.2 percent to
$2.07, rebounding from yesterday's 4.9 percent drop after an
international index unexpectedly excluded the
partially-privatised energy generator from among its
members, Goodson said. Fund managers who follow the index
must hold stocks that are included in it, and some try to
buy ahead of the announcement.
"The market has been
expecting them to enter the FTSE index, which is an index a
number of global funds track closely," Goodson said.
"Yesterday it was announced MightyRiver was going into the
index, but that Meridian isn't entering that index yet. What
you see happen is a lot of hedge funds, broking desks
etcetera try to frontline these index changes."
Conversely, MightyRiverPower rose 0.3 percent to
$3.44, extending yesterday's gains after being included in
the international index.
Air New Zealand rose 0.2 percent to $2.955. The national carrier will scrap its pre-selected travel insurance option after receiving a formal warning from the Commerce Commission, which is cracking down on businesses misleading consumers with 'opt out' additional products.
(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