tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo close ad
tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, October 28th, 7:22AM

Investments

rss
The Markets

Fonterra fund leads NZX 50 higher

New Zealand shares followed global markets higher led by the Fonterra shareholders’ fund after the cooperative announced a strategy reset that would return capital to investors.

Thursday, September 23rd 2021, 7:11PM

by BusinessDesk

The S&P/NZX 50 Index rose 85.70 points, or 0.7%, to 13,305.92. Turnover was $162 million.

Offshore markets were stronger overnight with investors reassured as Evergrande renegotiated a coupon payment with its bondholders and survived another day without insolvency.

The People’s Bank of China also injected 90 billion yuan into the nation's banking system, signalling to the market it would help stave off any trouble should the property developer collapse.

In NZ, investors were focused on a raft of news released by the country’s top exporter Fonterra which announced an improved full-year profit and plans to sell assets to return capital to shareholders.

Fonterra fund units jumped 5.3% to $4.00 following the news, despite the cooperative also announcing plans to cap the fund as part of a new capital structure.

The unit price had dropped significantly since the capital structure review was announced and the fund’s chair today expressed disappointment that a buyback wasn’t the preferred option.

Still, investors welcomed the normalised net profit of $588m, up $190m from last year, and plans to sell its Chilean assets and sell down its Australian business in a move that would return a billion dollars to stakeholders.

Other agriculture and dairy exporters also rallied. A2 Milk climbed 3.2% to $5.82 and Synlait Milk was up 2.7% at $3.37, after Fonterra boss Miles Hurrell said strong milk prices were likely to continue.

Skellerup Holdings was up 3.8% at $5.70, and winemaker Delegat Group rose 3.5% to $14.74.

Cancer diagnostics firm Pacific Edge was in a trading halt while it completed a placement of $60m to institutional investors.

The market was broadly positive with a wide range of stocks moving higher.

Shares in health and beauty brand Me Today fell 6% to 7.8 cents as it discovered a key customer of its new acquisition, King Honey, was holding much more stock than the company had expected after doing due diligence.

As a result, Me Today is now expecting sales to be “considerably less than anticipated” and said it was “in discussions with the vendor in respect to this level of inventory”.

The kiwi dollar fell slightly throughout the day and was trading at 69.98 US cents at 3pm in Wellington, down from 70.23 cents yesterday.

Tags: Market Close

« NZ shares up with Evergrande lurking in backgroundPacific Edge up 6%; while index dips »

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
Subscribe Now

AM Update - Your morning business news update

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 ▲3.25 ▲3.75 ▲3.99
ANZ 4.59 ▲3.84 ▲4.30 ▲4.54
ANZ Blueprint to Build 1.68 - - -
ANZ Special - ▲3.24 ▲3.70 ▲3.94
ASB Back My Build 2.04 - - -
ASB Bank 4.45 ▲3.25 ▲3.75 ▲3.99
Basecorp Finance 5.49 - - -
Bluestone ▲3.74 ▲3.54 ▲3.89 ▲4.09
BNZ - Classic - ▲3.24 ▲3.79 ▲3.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 4.70 ▲3.84 ▲4.39 ▲4.59
BNZ - TotalMoney 4.70 - - -
CFML Loans 5.15 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 3.95 ▲4.10 -
Credit Union South 5.65 3.95 ▲4.10 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 4.99 3.80 3.90 -
Lender Flt 1yr 2yr 3yr
HSBC Premier 4.49 2.19 2.45 2.69
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC ▲4.15 ▲2.89 ▲3.29 ▲3.49
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 4.00 ▲4.14 ▲4.44 ▲4.84
Kiwibank - Offset 4.00 - - -
Kiwibank Special 3.75 ▲3.29 ▲3.59 ▲3.99
Liberty 5.69 - - -
Nelson Building Society 4.95 2.99 3.24 -
Lender Flt 1yr 2yr 3yr
Pepper Essential 4.79 - - -
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 3.05 3.45 3.75
SBS Bank Special - 2.55 2.95 3.25
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - ▲2.79 - -
The Co-operative Bank - Owner Occ 4.55 ▲2.99 ▲3.60 ▲3.89
The Co-operative Bank - Standard 4.55 ▼3.49 ▲4.10 ▲4.39
TSB Bank 5.34 ▲3.75 ▲4.20 ▲4.44
TSB Special 4.54 ▲2.94 ▲3.40 ▲3.64
Wairarapa Building Society 4.99 3.55 3.49 -
Lender Flt 1yr 2yr 3yr
Westpac 4.84 ▲3.79 ▲4.39 ▲4.59
Westpac - Offset 4.84 - - -
Westpac Special - ▲3.19 ▲3.79 ▲3.99
Median 4.57 3.24 3.70 3.99

Last updated: 27 October 2021 8:49am

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