About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, July 23rd, 9:33PM
rss
The Markets

NZ shares cap off 10-year bull market with 0.9% weekly gain

New Zealand shares rallied into the 10th anniversary of the longest bull market in share market history, gaining 0.9 percent this week after central banks around the world indicate interest rates will remain low and might go even lower.

Friday, March 8th 2019, 7:02PM

by BusinessDesk

The benchmark S&P/NZX 50 Index gained 2.91 points, or 0.3 percent, to 9440.27 today. Within the index, 22 shares rose, 8 were unchanged and 20 fell with turnover at $149.2 million.

Greg Smith, head of research at Fat Prophets, says that in a low interest rate environment, “higher income stocks are going to be even more in favour.”

The European Central Bank was the latest to abruptly change gears, downgrading its growth forecast for the euro area overnight New Zealand time to 1.1 percent for this year, down from its previous forecast of 1.7 percent.

“The gentailers (electricity generators and retailers) are certainly in demand” because of their strong dividend yields, Smith says. Mercury New Zealand gained 3.5 cents, or 1 percent, to $3.69 while Contact Energy climbed 3 cents, or 0.5 percent, to $6.42.

Among other high yielding stocks to benefit from falling interest rates, Auckland International Airport gained 6 cents, or 0.8 percent, to $7.69, Vector advanced 4 cents, or 1.1 percent, to $3.52 and Chorus rose 7 cents, or 1.3 percent, to $5.49.

Spark was a major exception, its shares falling 7 cents, or 1.9 percent, to $3.70 and it was the most heavily traded stock with 8.1 million shares changing hands, up from the 4.65 million daily average over the last 90 days.

Smith says investors are still disappointed with Spark’s 5.6 percent drop in first-half net profit, even though the telecommunications company is paying a 1.5 cent special dividend on top of its 11 cent ordinary dividend.

Chorus was the second-most heavily traded with 2.5 million shares sold today.

A2 Milk continues its stellar run, gaining 22 cents, or 1.5 percent, to $14.72 today, although that’s a little down from the record $15 reached earlier this week.

A2 shares have gained more than 32 percent year-to-date compared with the Top 50’s 7.1 percent gain and its 55 percent jump in first-half net profit certainly didn’t hurt.

“It was obviously a very good result and it’s doing a lot better than many competitors,” Smith says.

A2’s performance over the last few years has been propelled by the success of its infant formula sales in China.

“The markets are largely pricing in a resolution” to the trade war between the US and China and certainly there have been no signs yet that A2 has been affected, Smith says.

“But also with A2, you’ve got an emerging US story as well,” he says.

A2 is now selling fresh milk in more than 12,400 stories in the US where first-half revenue more than doubled.

Sky Network Television was the day’s biggest gainer, its shares rising 3 cents, or 2.3 percent, to $1.33, but they’re still down more than 28 percent year to date as investors worry about new technologies eroding its franchise.

“That’s possibly a bit of a rebound with bargain hunters coming in,” Smith says, adding that Sky’s new chief executive, Martin Stewart, has a big task ahead of him.

It was the opposite story with cinema technology company Vista Group which was the day’s biggest decliner, sinking 13.9 cents, or 2.9 percent, to $4 on trading of 207,544 shares. The last time more than 200,000 shares changed hands in one day was last December.

It wowed investors last week with its 26.7 percent jump in first-half net profit and the shares are still up 4.7 percent since the announcement.

Tags: Market Close

« Defensive stocks find favour with investorsNZ shares decline as global uncertainty weighs; Sky TV hits low »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Southern Cross limits trail commission
    “Had my letter today, and frankly, my comments could be described as scathing. When Southern Cross talks about no change...”
    10 hours ago by JPHale
  • AMP loses fight over KiwiSaver ad
    “the advertisement was not seeking to sell anything lol...”
    12 hours ago by all hat, no cattle
  • Make advisers discuss ethical options: Coates
    “There is so much I could say about this but reading the phrase “should be obliged” and the name “Green Party” really...”
    12 hours ago by John Milner
  • Make advisers discuss ethical options: Coates
    “This is a great idea. We should also make it compulsory that they raise eating (preferably healthy) and lifestyle practices,...”
    12 hours ago by Michael Chamberlain
  • Ideal client outcomes
    “If you want a world full of fuzzy thinking, of uncertainty of obligation and very broad liability, imposed at the subjective...”
    13 hours ago by Tash
Subscribe Now

AM Update - Your morning business news update

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.69 4.35 4.35 4.55
ANZ Special - 3.85 3.85 4.05
ASB Bank 5.70 4.29 4.35 4.55
ASB Bank Special - 3.89 3.85 4.05
BNZ - Classic - 3.85 ▼3.79 4.05
BNZ - Mortgage One 6.40 - - -
BNZ - Rapid Repay 5.85 - - -
BNZ - Std, FlyBuys 5.80 4.69 4.59 4.79
BNZ - TotalMoney 5.80 - - -
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Lender Flt 1yr 2yr 3yr
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.60 4.75 -
Housing NZ Corp 5.80 4.69 4.49 4.45
HSBC Premier 5.89 3.79 3.79 3.89
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
Lender Flt 1yr 2yr 3yr
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.60 4.60 4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.65 - - -
Kiwibank Special - 3.85 3.85 3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 ▼4.69 ▼4.79 -
Resimac 5.30 4.86 4.14 4.19
RESIMAC Special - - - -
SBS Bank 5.79 4.85 5.05 5.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 3.85 3.85 3.99
Sovereign 5.80 4.29 4.35 4.55
Sovereign Special - 3.89 3.85 4.05
The Co-operative Bank - Owner Occ 5.65 3.89 3.89 4.05
The Co-operative Bank - Standard 5.65 4.39 4.39 4.55
TSB Bank 5.69 4.45 4.35 4.55
TSB Special - 3.95 3.85 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.79 4.69 4.79 5.19
Westpac - Offset 5.79 - - -
Westpac Special - 3.85 3.85 4.05
Median 5.80 4.35 4.35 4.19

Last updated: 22 July 2019 9:19am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com