Friday 26th June 2015 |
Text too small? |
New Zealand shares rose as Meridian Energy and MightyRiverPower rebounded from recent lows. Diligent Corp and Fisher & Paykel Healthcare advanced as the kiwi dollar fell.
The S&P/NZX 50 Index rose 22.16 points, or 0.4 percent, to 5755.45. Within the index, 25 stocks rose, 15 fell and 10 were unchanged. Turnover was $118 million.
Energy companies rallied after coming under selling pressure on concern the possible closure of the Tiwai point aluminum smelter would dent demand for power. MRP led the benchmark index higher, up 3.5 percent to $2.64. Meridian advanced 2.7 percent to $2.105. Contact Energy rose 0.4 percent to $4.97.
Tiwai concerns "have weighed on the sector a little over recent weeks but maybe they've reached a point where people see them as good value and a few buyers have been stepping in," said Mark Lister, head of private wealth research at Craigs Investment Partners. "They obviously pay highly attractive dividend yields, so they weren't going to keep falling forever, when you've got low interest rates which are expected to go down further."
F&P Healthcare, which counts the US as the biggest market for its breathing devices, advanced 0.3 percent to $6.93, as a weaker New Zealand dollar lifted sentiment for companies with offshore earnings.
"The currency being low and there's been more comments out of the Reserve Bank as recently as today just talking it down a little bit more so there's an expectation that the currency will stay weak, which is supportive for exporters," Lister said.
Diligent advanced 2.4 percent to $5.61. The New York based governance app developer has been censured by the New Zealand Markets Disciplinary Tribunal for the third time in two years after the sudden departure of director Mark Weldon leaving it in breach of NZX listing rules.
The market shrugged off the censure as the fall in the dollar favoured the company, Lister said. Diligent "is one of those stocks that benefit from a weak New Zealand dollar."
NZX was unchanged at $1.07. The stock market operator has sold its 50 percent stake in shareholding registry Link Market Services for up to $14.3 million and signalled interest in buying the Reserve Bank's NZClear settlement system. Separately, the firm agreed to acquire investment platform Apteryx.
Heartland New Zealand rose 1.7 percent to $1.20. The bank formed through the merger of Canterbury and Southern Cross building societies with Marac Finance has dismissed media speculation that it is in the running to buy Fisher & Paykel Finance.
Freightways gained 0.3 percent to $5.92. The courier and information management company and aviation services firm Airwork Holdings have launched an airfreight network to replace Freightways’ existing unit, and will count New Zealand Post’s Express Couriers as a cornerstone customer.
Spark New Zealand, formerly Telecom Corp, dropped 0.4 percent to $2.80. Auckland International Airport, the nation's busiest gateway, was unchanged at $4.96. Fletcher Building gained 0.6 percent to $8.15.
BusinessDesk.co.nz
No comments yet
Second St John withdrawal of labour takes effect tomorrow with further strikes likely
Sanford Appoints Independent Director
CRP ADVISES CLOSURE OF SHARE OFFER TO EXISTING INVESTOR
Devon Funds Morning Note - 14 August 2024
OCR 5.25% - Monetary restraint tempered as inflation converges on target
Consumers still need due diligence as new deposit takers emerge.
Woolworths strike: staff asked to dress up in Disney costumes for a week on their own dollar
Turners Invests in Quashed Online Insurance Platform
PGW Reports on Challenging Year
Arvida Announces Executive Team Changes