MARKET CLOSE: NZ shares rise as Contact stock changes hands 5 Aug 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: NZ shares rise as Contact stock changes hands; F&P Healthcare, SkyTV gain
By Jonathan Underhill
Aug. 5 (BusinessDesk) - New Zealand shares rose, continuing the week's volatile course as Origin Energy sold its Contact Energy stake at a discount, creating one of the busiest days on record for the NZX in terms of turnover.
The S&P/NZX 50 Index rose 4.76 points, or 0.1 percent, to 5938.51. Within the index, 20 stocks rose, 20 fell and ten were unchanged. Turnover was $2.1 billion, compared to a daily average in July of $142 million, after Origin Energy raised $1.8 billion in a bookbuild for its stake at $4.65 a share, a 7.9 percent discount to the $5.02 closing price for Contact shares on Monday. Today the shares rose 1.2 percent to $5.08.
"Today's a special case," said Stuart Williams, head of equities at Nikko Asset Management. "There's been some very strange reactions. Some people were caught short and people were disappointed with their allocations and recognised that it was an absolute bargain at $4.65."
Williams said Origin "left a staggering amount of money on the table" and that the decision to sell was more about "corporate priorities from Australia."
Among other power companies, which were among the biggest to move this week as institutions sold down to buy into the Contact offer, TrustPower rose 0.3 percent to $7.77. MightyRiverPower fell 1.4 percent to $2.75, while Meridian Energy, which extended its contract with Tiwai Point on more favourable terms this week, was unchanged at $2.29.
Williams said it will be "really fascinating now how some fund managers position themselves". Contact's index weighting rises to about 5 percent from about 2.7 percent currently and there'd be a case to re-weight them in some portfolios at the expense of other power companies or sectors.
F&P Healthcare rose 2.3 percent to $7.63 as the kiwi dollar fell near 65 US cents, helping the fortunes of manufacturers selling in US dollars.
Sky Network Television, the nation's biggest pay-TV company, rose 1.8 percent to $6.19. Diligent Corp fell 3.5 percent to $5.45. Z Energy rose 1.8 percent to $5.81 and a2 Milk Co rose 1.2 percent to 82 cents.
In the wider market, Intueri Education Group fell 4 percent to $1.70 after New Zealand's largest private training college cut its full-year earnings guidance for a second time, citing weaker sales at its Quantum Education Group division and higher-than-expected costs. Underlying earnings before interest, tax and amortisation is expected to be $27 million to $29 million in calendar 2015, down from a previous range of $30 million to $33 million.
Fonterra Shareholders' Fund fell 1.5 percent to $4.62. A further collapse in dairy prices overnight in the GlobalDairyTrade auction makes it more likely Fonterra will cut its milk payout forecast and potentially its dividends.
Auckland International Airport fell 1.9 percent to $5.435 after the nation's busiest gateway said chief financial officer Simon Robertson and corporate affairs manager Charles Spillane were leaving after a company review.
Xero, the cloud-based accounting software developer, was unchanged at $17.40 after it said chief operating officer and interim chief financial officer Ross Jenkins will retire by the end of this calendar year following a transition to incoming CFO Sankar Narayan.
(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