MARKET CLOSE: NZ shares extend gains with global markets 21 Apr 2016
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 extend gains with global equity markets; Fletcher, A2, ANZ rise
By Sophie Boot
April 21 (BusinessDesk) - New Zealand shares rose to a fresh record as Fletcher Building reached a 10-month high on perceptions it has lagged the market's rally. A2 Milk, dual-listed Australia & New Zealand Banking Group and Westpac Banking Corp also rose while Meridian Energy fell.
The S&P/NZX 50 Index rose 4.8 points, or 0.1 percent, to 6,906.1. Within the index, 23 stocks rose, 18 fell and eight were unchanged. Turnover was $185.6 million.
Fletcher Building gained 2.2 percent to $8.45, a ten-month high and has risen about 13 percent this year.
"Notwithstanding that the stock's rallied, it's still trading at a significant discount compared to the rest of the market, and I think you'd also have to fold into that there's a pretty positive sentiment for property generally," said Stuart Williams, head of equities at Nikko Asset Management. "Their revenues have dominated out of New Zealand, which is doing pretty well relative to the rest of the world. It is a big liquid name and if people have a view about New Zealand they can play that relatively easily."
A2 Milk advanced 1.6 percent to $1.86. It dropped last week amidst uncertainty about changing regulations in China but has since rebounded.
"A2 is dealing with the machinations of what's happening in China regarding regulation or not regulation, and labelling or not labelling," Williams said. "In an overall sense, over the last month, it hasn't really gone anywhere. There's a lot of people who are looking at that, and if you think the market's becoming reasonably fully priced, stocks like A2 with really wide-open potential growth become a bit more compelling."
Australia & New Zealand Banking Group led the index, up 3.2 percent to $27.27, while Westpac Banking Corp rose 3.1 percent to $35, as Australia's S&P/ASX 200 Index gained 0.8 percent. Shares rose across Asia in the afternoon's trading after crude oil rallied overnight.
Ebos Group advanced 3.1 percent to $16.27, and Summerset Group Holdings was up 2.4 percent to $4.68.
Z Energy gained 2 percent to $7.25. The Commerce Commission's decision on whether to approve Z Energy's application to buy Chevron New Zealand's service station chain is due on April 29, having been delayed multiple times.
"If it was to go through, and that's a decent-sized question, there would have to be concessions because that's simply too big a market size for one consolidated player," Williams said. "If they're going to have close to 50 percent of the market that's not good for consumers. It simply becomes a matter of what are the mitigations that are required. It's taken a long time so there's obviously some big issues for the Commerce Commission to chew on, that's for sure."
Infratil rose 1.1 percent to $3.275. Its NZ Bus unit has inked a US$30 million deal with US-based Wrightspeed to enable it to transition its buses to electric technology. NZ Bus will receive its first Wrightspeed powertrains by mid-2016 and after fitting and testing, it expects to have the first electric-powered bus on the road by the last quarter of this year.
Nuplex Industries was unchanged at $5.23. The specialty chemical maker, whose shareholders will vote on whether to accept a $1.05 billion takeover offer later this year, has sold its Australasian pulp and paper chemicals business for A$21 million.
Metlifecare was unchanged at $5.34. It has sold its Wairarapa retirement village for $6 million as it focuses its expansion on the upper North Island.
Meridian Energy dropped most, down 2.4 percent to $2.67, while Kathmandu Holdings fell 2.3 percent to $1.70 and Air New Zealand declined 1.7 percent to $2.89.
Spark New Zealand shed 1.7 to $3.585, which Williams said was at the whim of international investors who like the yield story.
"Moving around 5 or 10 cents is nothing unusual for that name now, it doesn't reflect the underlying performance of the business, it just reflects the whim of whichever international investor happens to be going into or out of the stock," he said.
Outside the main index, New Zealand Oil & Gas rose 1 percent to 49 cents. The energy exploration company has upgraded the developed reserves at the Kupe field off the Taranaki coast and is still looking at ways to expand untapped reserves in the project.
The gas and light oil field's developed reserve was lifted to 6.02 million barrels of oil from 5.22 million barrels and NZOG estimates there's likely to be an extra 3.6 petajoules of gas and 16.69 kilotonnes of LPG, the company said in a statement.
(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