MARKET CLOSE: NZ shares edge up to new 5-year high; Sky TV, Tower gain
Nov. 29 (BusinessDesk) - New Zealand shares edged up to a new five-year high as Sky Network Television surprised
investors with a special dividend and Tower said it would return capital to shareholders after the sale of its medical
insurance business.
The NZX 50 Index rose 4.61 points, or 0.1 percent, to 4016.77, the highest since the start of January 2008. Within the
index, 25 stocks rose, 18 fell and seven were unchanged. Turnover was $142 million, with big crossings of Telecom and
Sky TV.
Sky TV, the nation’s main pay-TV company, rose about 3 percent to $5.22. The Auckland-based company will pay a special
dividend of 32 cents per share with a record date on Dec. 13 to distribute tax credits. Last year Sky TV paid a special
dividend of 25 cents per share.
Sky TV’s special dividend “came out of the blue somewhat and shareholders will welcome the decision,” said Grant
Williamson, a director at brokerage Hamilton Hindin Greene.
He said given the market's strong gains recently, a number of shares are now "pretty fair value" and will need to show
more earnings growth before they're rerated further.
Tower, the insurer that’s 34 percent owned by Guinness Peat Group, posted a 67 percent jump in full-year profit and said
it will return $120 million to shareholders after the sale of medical insurance business to Australia’s nib.
It was “a very good result, unaffected by any major claims and with proceeds from the sale and some cash from their
balance sheet returned to shareholders,” Williamson said.
Guinness Peat, the investment company that’s winding down its portfolio, rose 0.9 percent to 59 cents.
Methven, the tapware maker, rose 5.2 percent to $1.42 after reporting a worse-than-expected 27 percent drop in
first-half profit on its unprofitable British operation. It still managed to declare a 4.5 cent interim dividend.
Pyne Gould Corp fell 15 percent to 23 cents, and earlier plumbed a record low 22 cents, following chairman Bryan
chairman Mogridge told shareholders yesterday that the company won’t pay dividends and the board is “seriously
considering the domicile of the company,” which is unlikely to be New Zealand.
Argosy Property, whose shareholders agreed to corporatise the company after buying out its ANZ Bank-owned manager last
year, rose 0.5 percent to 93 cents after lifting first-half earnings 29 percent as it reaped the benefits of a cheaper
cost structure from bringing management inhouse.
Fisher & Paykel Healthcare was the biggest decliner on the NZX 50, falling3.1 percent to $2.51 after shedding its 5.4 cent
interim dividend. Vital Healthcare Property Trust dipped 0.8 percent to $1.26 after shedding its 1.925 cent interim
payment.
Goodman Fielder, the Australasian food manufacturer, rose 6.2 percent to 86 cents, the biggest percentage gain on the
NZX 50.
Fletcher Building, the biggest company on the bourse, fell 0.5 percent to $7.81. Telecom gained 0.2 percent to $2.35.
(BusinessDesk)