New Zealand shares rose, lifting the NZX 50 Index to its biggest gain in almost
two weeks, as optimism President Barack Obama will announce plans to revive
growth and free up credit helped banks to rebound.
The NZX 50 rose 29.37, or 1.1%, to 2734.41. Within the index, 25 stocks rose,
15 fell and 10 were unchanged. Turnover was NZ$78.4 million, according to Reuters
data. Rural services company PGG Wrightson climbed 6.1% to NZ$1.22, leading
the index higher, having slumped 19% in the past week.
Westpac Banking Corp. rose 3.5% to NZ$19.25 on the NZX, following a rebound
in U.S. financial, led by a 21% jump in Citigroup and a 23% advance by Bank
of America.
The two U.S. lenders led the Dow Jones Industrial Average up 2.9%, recovering
from the worst Inauguration Day stock slump in history amid disappointment that
Obama’s speech didn’t contain more concrete economic measures. Shares
rallied overnight after U.S. Treasury Secretary elect Timothy Geithner said
Obama would produce “a comprehensive plan to help stabilize the core of
the financial system.”
Fletcher Building, which owns the U.S.-based Formica laminates business, rose
about 2% to NZ$5.75. The stock has dropped about 4% this month. The company
today said it completed the sale of NZ$100 million of 5- and 7-year notes paying
9% interest.
Goodman Fielder rose 4.7% to NZ$2. Its shares are the biggest gainers on the
NZX 50 this year, rising 21%. Freightways climbed 3.7% to NZ$2.80. Rakon dropped
1.8% to NZ$1.08 and is the biggest decliner on the benchmark so far this year,
falling 13%. NZX Ltd. fell 2% to NZ$4.90.
Investors have had a mixed bag of data and news the past few days about the
state of the local economy and markets. Manufacturing activity remained in contraction
in December on dwindling production and fewer new orders. The Bank of New Zealand-Business
NZ Performance of Manufacturing Index rose to 42.5 last month from a record
low in the previous month.
Consumer spending on credit and debit cards fell 0.5% in December, after a record
drop in November, according to government figures. The card figures are an early
indicator of retail sales in the latest month after spending was unexpectedly
little changed in November. Ex-auto card spending rose 0.2%.
Meantime Contact Energy, the largest utility on the NZX 50 and a stock typically
classed as defensive, surprised investors this week by announcing full-year
profit may fall as much as 23% as hydro dams in the South Island spill water,
the Tiwai Point aluminium smelter reduces output and gas costs rise.
Contact shares gained 2.4% to NZ$6.76 today, having erased 78 cents, or about
NZ$450 million from its market value in the past two days.
“Some analysts are a wee bit cautious on the stock going forward,”
said Alan Moore, who helps manage about NZ$250 million at Milford Asset Management.
“Quite a few companies are fairly attractive – what we don’t
know is how sustainable that it,” Moore said.
“The market will be waiting to absorb the earnings season,” he said.
“I would be surprised if many CEOs will be coming out and saying we’re
going to have a really good year ahead.”
A possible exception is Fisher & Paykel Healthcare, he said. The company
derives about 80% of its revenue in U.S. dollars and benefits when the kiwi
currency slides. Its breathing masks and respirators are meeting growing demand
in markets such as the U.S., where conditions such as sleep apnea are being
linked to illnesses including heart disease. The shares fell 0.3% to NZ$3.16
today.
New Zealand Farming Systems Uruguay fell 3.2% to 60 cents. The company developing
dairy farms in South America using intensive New Zealand farming techniques,
failed to raise capital last year to expand. It now has to deal with a slump
in world prices for dairy products which spurred the European Union to revive
export subsidies for its farmers.
In Sydney, the S&P/ASX 200 Index rose 1.3% to 3486.8 as Finance Minister
Lindsay Tanner said the government was in talks with banks to establish a crisis
fund to help companies meet their debt obligations. Tanner said details on the
fund will be announced soon.
Shares of Wesfarmers Ltd., Australia’s second-biggest retailer, were halted
pending its plans to raise A$2.8 billion selling shares at a discount to repay
debt taken on with its 2007 acquisition of Coles Group. Woolworths Ltd., the
nation’s largest retailer, rose 1.1% to A$26.08.
Newcrest Mining fell 4.7% to A$31.50 after Australia’s largest gold mining
company said second-quarter mining costs surged 82% as output fell and the price
of copper declined.
National Australia Bank, the nation’s largest lender, rose 1.9% to A$17.95
after Finance Minister Tanner’s comments on a fund to lend directly to
companies.
In Tokyo, the Nikkei 225 Index rose 1.1% to 7988.22 after the Bank of Japan
kept interest rates on hold and said it expects the world’s second largest
economy to contract.
Toyota Motor fell 4.2% after government figures showed Japan’s exports
dropped 35% in December,
(Businesswire.co.nz)
NZX Top 50
Last updated: 22/01/2009 5:09pm
AIA |
1.75 |
0.00 |
![](/images/icnc.gif) |
AIR |
0.89 |
+0.01 |
![](/images/icup.gif) |
AMP |
6.60 |
-0.05 |
![](/images/icdn.gif) |
ANZ |
16.34 |
-0.04 |
![](/images/icdn.gif) |
APN |
2.68 |
0.00 |
![](/images/icnc.gif) |
APT |
0.99 |
+0.01 |
![](/images/icup.gif) |
CAV |
1.90 |
-0.03 |
![](/images/icdn.gif) |
CEN |
6.76 |
+0.16 |
![](/images/icup.gif) |
EBO |
4.46 |
+0.06 |
![](/images/icup.gif) |
FBU |
5.75 |
+0.11 |
![](/images/icup.gif) |
FPA |
1.30 |
-0.01 |
![](/images/icdn.gif) |
FPH |
3.16 |
-0.01 |
![](/images/icdn.gif) |
FRE |
2.80 |
+0.10 |
![](/images/icup.gif) |
GFF |
2.00 |
+0.09 |
![](/images/icup.gif) |
GMT |
0.96 |
+0.01 |
![](/images/icup.gif) |
GPG |
0.90 |
-0.01 |
![](/images/icdn.gif) |
HLG |
2.20 |
0.00 |
![](/images/icnc.gif) |
IFT |
1.67 |
+0.02 |
![](/images/icup.gif) |
IMP |
1.10 |
0.00 |
![](/images/icnc.gif) |
ING |
0.64 |
0.00 |
![](/images/icnc.gif) |
KIP |
1.04 |
+0.01 |
![](/images/icup.gif) |
LNN |
10.35 |
+0.10 |
![](/images/icup.gif) |
MFT |
4.47 |
-0.03 |
![](/images/icdn.gif) |
MHI |
0.54 |
+0.01 |
![](/images/icup.gif) |
MVN |
1.25 |
0.00 |
![](/images/icnc.gif) |
NPX |
2.95 |
0.00 |
![](/images/icnc.gif) |
NZO |
1.26 |
+0.02 |
![](/images/icup.gif) |
NZR |
5.90 |
+0.05 |
![](/images/icup.gif) |
NZS |
0.60 |
-0.02 |
![](/images/icdn.gif) |
NZX |
4.90 |
-0.10 |
![](/images/icdn.gif) |
PFI |
1.09 |
0.00 |
![](/images/icnc.gif) |
PGW |
1.22 |
+0.07 |
![](/images/icup.gif) |
POT |
6.21 |
+0.01 |
![](/images/icup.gif) |
PPL |
0.94 |
+0.01 |
![](/images/icup.gif) |
PRC |
0.97 |
-0.03 |
![](/images/icdn.gif) |
RAK |
1.08 |
-0.02 |
![](/images/icdn.gif) |
RYM |
1.38 |
-0.02 |
![](/images/icdn.gif) |
SAN |
5.25 |
0.00 |
![](/images/icnc.gif) |
SKC |
3.13 |
+0.01 |
![](/images/icup.gif) |
SKL |
0.73 |
-0.02 |
![](/images/icdn.gif) |
SKT |
3.95 |
+0.06 |
![](/images/icup.gif) |
STU |
2.85 |
-0.07 |
![](/images/icdn.gif) |
TEL |
2.51 |
+0.04 |
![](/images/icup.gif) |
THL |
0.70 |
0.00 |
![](/images/icnc.gif) |
TLS |
4.40 |
+0.04 |
![](/images/icup.gif) |
TPW |
7.15 |
-0.04 |
![](/images/icdn.gif) |
TWR |
1.69 |
+0.02 |
![](/images/icup.gif) |
VCT |
2.08 |
+0.01 |
![](/images/icup.gif) |
WBC |
19.25 |
+0.65 |
![](/images/icup.gif) |
WHS |
3.70 |
+0.10 |
![](/images/icup.gif) |
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