Sharechat Logo

MARKET CLOSE: NZX 50 advances, led by Goodman Fielder

Tuesday 27th January 2009

Text too small?
New Zealand shares rose, led by foodmaker Goodman Fielder, amid speculation it is seeking a buyer for its dairy products business and after better-than-expected U.S. data helped buoy Wall Street.

The NZX 50 Index climbed 30.111, or 1.1%, to 2735.875, the biggest gain in two weeks. Within the index, 18 stocks rose, 19 fell and 13 were unchanged. Turnover was a subdued NZ$44.3 million.

Goodman Fielder rose 5.3% to NZ$2, matching the six-month high it reached on Jan. 22. Parmalat, Italy’s biggest dairy company, is considering making an offer for the dairy products unit, la Repubblica reported last week.

Fletcher Building climbed 3.1% to NZ$5.71 after National Association of Realtors figures showed U.S. sales of existing homes expectedly rose 6.5% to 4.74 million in December while the Conference Board's index of leading economic indicators gained 0.3% as money supply rose.

The data helped lift the Standard & Poor’s 500 Index by 1.1% overnight. Fisher & Paykel Healthcare, which gets 80% of its revenue in U.S. dollars, rose 1.6% to NZ$3.23 as the kiwi dollar held near a two-month low.

The local currency has dropped 11% in the past two weeks amid further evidence of the prolonged economic slump and expectations the central bank will slash the official cash rate by 100 basis points to 4% this week.

Fisher exporter Sanford rose 1.9% to NZ$5.40. Fisher & Paykel Appliances gained 3.2% to NZ$1.30.

Telecom, the biggest phone company on the NZX 50, rose 2.4% to NZ$2.57 after media reports that the company and its rival Vodafone are resisting moves by the Commerce Commission to control the wholesale charge to make calls between fixed line and mobile phones. The regulator has set a Feb. 5 deadline for submissions into its inquiry.

New Zealand investor confidence slumped in the fourth quarter as more people sought the relative safety of term deposits and bank savings, according to an ASB Bank survey released today.
Investor confidence sank to a net -20% in the final three months of 2008 from a net 3% in the third quarter. Confidence in stocks held at just 7%, according to the survey.

“Investors have had a bumpy ride and may be prepared to forsake higher possible returns in some of the more volatile investments in favour of a good night's sleep and a more modest but reliable return," said Jonathan Beale, ASB's head of investment services.

Tourism Holdings dropped 4.3% to 67 cents amid concern the global economic slump is eroding demand for tourist services. International visitor numbers are down 5% to 10% this summer, according to figures from the Tourism Industry Association.

In Sydney, the S&P/ASX 200 Index jumped 3% to 3444, playing catch-up after the Australia Day holiday yesterday and as stronger prices for metals lifted mining companies. Rio Tinto surged 11% to A$42.19 and BHP Billiton rose 6.9% to A$29.33. Copper futures for March delivery surged 7.8% to US$1.5865 a pound on the New York Mercantile Exchange yesterday.

Banks gained after business confidence rose from a record low last month amid optimism a government stimulus package and lower borrowing costs will help underpin the economy. The sentiment index climbed 10 points to minus 20 in December, according to a National Australia Bank survey. Commonwealth Bank of Australia rose 2.8% to A$24.74, ANZ Bank climbed 2.8% to A$12.40 and National Australia Bank gained 2.2% to A$17.31.

APN News & Media, publisher of the New Zealand Herald newspaper, dropped 3.7% to A$2.07, a 10-year low, after Independent News & Media abandoned plans to sell its 39% stake as potential bidders struggled to secure funding.

In Japan, the Nikkei 225 Index surged 4.7% to 8044.31 after the government began a US$16.7 billion scheme to buy shares in companies at risk from the financial crisis, adding to its commitment to buy corporate debt to help companies raise funds.

(Businesswire.co.nz)

NZX Top 50
Last updated: 27/01/2009 5:09pm

AIA 1.84 +0.06
AIR 0.89 0.00
AMP 6.20 0.00
ANZ 15.50 -0.41
APN 2.68 0.00
APT 0.95 -0.03
CAV 1.90 +0.01
CEN 6.70 +0.04
EBO 4.40 -0.01
FBU 5.71 +0.17
FPA 1.30 +0.04
FPH 3.23 +0.05
FRE 2.77 -0.01
GFF 2.00 +0.10
GMT 0.96 +0.01
GPG 0.86 -0.01
HLG 2.18 0.00
IFT 1.69 +0.04
IMP 1.09 -0.01
ING 0.64 +0.01
KIP 1.03 -0.02
LNN 10.20 0.00
MFT 4.47 -0.01
MHI 0.52 0.00
MVN 1.27 0.00
NPX 2.85 0.00
NZO 1.29 +0.03
NZR 6.10 0.00
NZS 0.60 0.00
NZX 4.89 -0.10
PFI 1.10 +0.01
PGW 1.23 0.00
POT 5.87 -0.02
PPL 0.94 0.00
PRC 0.97 -0.01
RAK 1.07 -0.03
RYM 1.34 -0.02
SAN 5.40 +0.10
SKC 3.07 -0.03
SKL 0.69 -0.01
SKT 3.95 +0.05
STU 2.70 -0.10
TEL 2.57 +0.06
THL 0.67 -0.03
TLS 4.50 +0.05
TPW 7.25 +0.10
TWR 1.61 -0.03
VCT 2.08 0.00
WBC 18.60 +0.04
WHS 3.68 -0.06

 



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: Telecom and Air New Zealand gain
MARKET CLOSE: NZX 50 snaps 4-day slide as earnings awaited; Mainfreight gains
MARKET CLOSE: Auckland Airport feels effects of global downturn
MARKET CLOSE: Shares fall with global slide; Rakon, Nuplex fall
MARKET CLOSE: Pumpkin Patch slips as investors mull downsizing
MARKET CLOSE: Weaker building stats weigh on Fletcher Building
MARKET CLOSE: Telecom and Contact Energy make gains
MARKET CLOSE: NZ shares mixed, FPA, Sky City fall, Rakon gains
MARKET CLOSE: NZ shares gain; Telecom lifts on Chorus, Sky City gains
MARKET CLOSE: NZ shares fall a second day; Wrightson drops on forecast