About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, November 20th, 12:09PM
rss
The Markets

Fonterra Fund recovers; the chase for yield continues

New Zealand shares were led higher by a recovery in Fonterra Shareholders' Fund units after a sharp sell-off yesterday. Utilities and property investors remain in favour among investors wanting a decent yield.

Friday, July 5th 2019, 6:33PM

by BusinessDesk

The S&P/NZX 50 Index rose 57.19 points, or 0.5 percent, to 10,615.47. Within the index, 33 stocks gained, 11 fell and six were unchanged. Turnover was $134.4 million.

Fonterra fund units led the market higher, up 3.7 percent at $3.68. They bounced back from yesterday's 5.3 percent slide but are still down 20 percent so far this year. Chief financial officer Marc Rivers moved to calm the market, issuing a statement to the stock exchange saying there was nothing new behind the slump. About 395,000 units changed hands, almost twice their 90-day average of 200,000. Fonterra's farmer-owned shares rose 5.1 percent to $3.69 on a volume of 641,000, more than its 163,000 average.

"They stuck their hand up and said they're not doing as well as they could do, but they're addressing their debt situation, selling assets like Tip Top," said Greg Smith, head of research at Fat Prophets.

Companies offering reliable income remained in demand, and Smith said that will likely remain a key theme after the Reserve Bank of Australia cut its benchmark interest rate this week, putting pressure on New Zealand's central bank to follow suit. What's more, upcoming US employment data may force the Federal Reserve to cut, adding to the attraction of New Zealand's high-yield stocks.

Meridian Energy rose 2.7 percent to $4.83 on a volume of 1.1 million shares. Chorus was up 2.2 percent at $5.80, Goodman Property Trust rose 2.1 percent to $1.97, and Genesis Energy climbed 2 percent to $3.50 on a volume of 1.9 million shares, about three times it 610,000 average.

Smith said the local benchmark - which is at a record and trading at the highest forward price-to-earnings multiple across Asia - can probably run further due to the Reserve Bank of New Zealand's scope to cut interest rates further.

"The interesting thing is what happens when the RBNZ's lowering rates but also looking to raise bank capital requirements?"

Heartland Group Holdings, whose licensed New Zealand bank division supports the higher capital requirements, rose 1.8 percent to $1.70, while dual-listed Australian & New Zealand Banking Group was up 0.1 percent at $29.60 and Westpac Banking Corp rose 1.2 percent to $29.89.

Mercury NZ was the most traded stock on a volume of 4.7 million shares, well up on its 672,000 average. It rose 1.7 percent to $4.58. Spark New Zealand increased 0.9 percent to $3.985 on a volume of 4.2 million, while Kiwi Property Group was unchanged at $1.615 on a volume of 2.9 million shares, and Auckland International Airport decreased 0.5 percent to $9.50 on a volume of 2 million shares.

Among other stocks trading on volumes of more than a million shares, Precinct Properties New Zealand rose 0.9 percent to $1.77 and Arvida Group declined 1.5 percent to $1.36.

Pushpay Holdings fell 3.8 percent to $3.55 on a volume of 496,000 shares. The company came out of a trading halt yesterday from a bookbuild to help founder and former chief executive Chris Heaslip sell down his stake.

Trustpower shares rose 0.7 percent to $7.50 after confirming a seven-year, $50 million bond offer, with the ability to accept over-subscriptions of up to $25 million. The bonds will pay annual interest of 3.35 percent.

Chorus's 2028 bond paying annual interest of 4.35 percent was the most traded debt security with a volume of 507,000. The notes closed at a yield of 2.85 percent, up 5 basis points.

Tags: Market Close

« Prospect of US rate cut keeps yield in demand; Market rises; Fonterra sinksNZ shares dip; Summerset sales fall short of expectations »

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
  • When is a client really a client?
    “And this subtle upgrade to the understanding of a complaint. Which changes the ISO definition from an expression of dissatisfaction...”
    2 days ago by JPHale
  • When is a client really a client?
    “Just released additional standards from the FMA. Record keeping potentially until 7 years after the death of the life...”
    2 days ago by JPHale
  • When is a client really a client?
    “@ReganT interesting that the two life advisers involved with the code working group discussion are the ones being argued...”
    2 days ago by JPHale
  • When is a client really a client?
    “In a previous reply I responded to the concept of payment as a trigger. I actually agree it’s not. While we don’t often...”
    3 days ago by regant
  • When is a client really a client?
    “Tash are you being deliberately obtuse? I didnt say you have to keep sending/giving disclosure every year, I said you have...”
    3 days ago by regant
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 5.19 4.05 3.95 4.49
ANZ Special - 3.55 3.45 3.99
ASB Bank 5.20 4.05 3.95 4.39
ASB Bank Special - 3.55 3.45 3.89
BNZ - Classic - 3.55 3.45 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.35 3.35 3.35
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank 5.80 ▼4.14 ▲4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - ▼3.39 ▲3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.55 3.39 3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.55 3.45 3.99
Median 5.34 4.04 4.09 4.39

Last updated: 15 November 2019 4:16pm

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