INDEPENDENT NEWS

MARKET CLOSE: NZ shares rises onpositive offshore leads

Published: Fri 11 Jan 2019 08:47 PM
MARKET CLOSE: NZ shares rises as positive offshore leads spur buying
By Rebecca Howard
Jan. 11 (BusinessDesk) - New Zealand shares rose as investors were cheered when US Federal Reserve Chairman Jerome Powell reiterated the US central bank can be patient on raising interest rates further.
The S/NZX 50 index rose 40.42 points, or 0.5 percent, to 8,959.58. Within the index, 31 stocks rose, seven were unchanged and 12 fell. Turnover was $61.1 million.
Powell told the Economic Club of Washington DC the Fed can "watch patiently and carefully." His comments, coupled with other similar comments from Fed officials recently, has meant the market has pared back its expectations regarding Fed rate hikes for this year, increasing the attractiveness of equity markets. Investors, however, are still jittery about the US-China trade tensions. US and Chinese officials are now working on arrangements for higher-level trade talks after mid-level officials met this week.
Leads from US markets were reasonably strong "and we have flowed on from there," said Grant Davies, an investment advisor at Hamilton Hindin Greene in Christchurch. The Dow Jones Industrial Average added 0.5 percent in overnight trading.
With few domestic drivers, investor sentiment is largely being driven by events offshore. Volumes remained very tepid and "we are still in that holding pattern coming up to the earnings season in February," he said.
Synlait Milk added 0.8 percent to $9.27 after it said registration of its Dunsandel plant in the South Island has been renewed by Chinese authorities for another four years.
A2 Milk added eased 0.1 percent to $11.35.
The most heavily traded stock was Kiwi Property Group, which added 0.4 percent to $1.385 while Spark New Zealand was the second, adding 0.1 percent to $4.165, although volumes were well below the average of the past 90 days. Z Energy also saw fairly heavy trading, with around 621,155 shares trading hands, below the daily average of 1 million in the past three months. It gained 2.2 percent at $5.61.
Sky Network Television, up 4.8 percent at $1.98, was the biggest mover on the day, followed by SkyCity, which added 2.6 percent to $3.62.
In the other direction, the Fonterra Shareholders' Fund fell the most, losing 2.1 percent to $4.70 on some bargain-hunting after it gained in recent sessions. Air New Zealand shed 1.1 percent to $3.16 while Auckland International Airport was down 0.8 percent at $7.22.
Fletcher Building fell 0.6 percent to $4.94. According to Stats NZ, New Zealand councils consented almost 32,800 new dwellings in the year through November, 5.3 percent more than a year earlier.
Ahead of the February earnings season, Davies said investors are now watching for any Christmas updates from retailers, in particular after Kathmandu's disappointing Christmas result. Kathmandu, which has fallen 17.6 percent this year, ended down 0.4 percent at $2.25
(BusinessDesk)
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

2018: New Zealand’s equal-2nd warmest year on record
By: NIWA
GDP growth dampens in the September quarter
By: Statistics New Zealand
Coalition Government delivers boost for low income workers
By: New Zealand Government
IKEA to open in New Zealand
By: IKEA
2018 another hot year in NZ - Expert Reaction
By: Science Media Centre
Science Deadline: another hot year, fibre's benefits, 1080
By: Science Media Centre
2018 was NZ's warmest year on record - climate scientist
By: RNZ
Honours recognise work that addresses climate change
By: New Zealand Government
NZ economic growth softer than expected in Sept quarter
By: BusinessDesk
NZ economy slows, growth per person stalls
By: New Zealand National Party
Economic slowdown must prompt change in direction
By: ACT New Zealand
Taxpayers’ Union responds to economic growth slowdown
By: New Zealand Taxpayers' Union
Government outlines planned hikes in minimum wage
By: BusinessDesk
Wage rise welcome for some, worry for others
By: New Zealand National Party
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media