Story image

MARKET CLOSE: NZ shares rise led by rebound in MRP

14 Apr 15

New Zealand shares rose led by MightyRiverPower as the stock rebounded from a near six month low. Income paying stocks, such as Kiwi Property Group and Precinct Properties gained. Orion Health Group fell.

The NZX 50 Index rose 27.79 points, or 0.5 percent, to 5882.109. Within the index, 29 stocks rose, 11 fell and nine were unchanged. Turnover was $103 million.

MRP advanced 2.7 percent to $3, rebounding from its lowest level since November. The utility company had been sold off as investors raised cash to fund the second installment payment for Meridian Energy, due May 15, with a record date of May 4, the date from which shareholders will be eligible for the top-up. The government-controlled utility company listed on the bourse in October 2013, with the shares offered in installment receipts to sweeten the offer, with $1 up-front and the promise of full entitlement to dividends, and the remaining 50 cents due next month. Meridian edged up 0.3 percent to $1.915 and has fallen 11 percent over the past month.

"We've seen almost a reallocation of funds pending the 50 cent call on the Meridian partly paid holders," said James Smalley, director at Hamilton Hindin Greene. "I think investors were selling energy companies to take it up, particularly when Meridian dropped down to its lows. They might have thought 'I'll sell these other ones because they've held their value'. So we're seeing a bit of a bounce back."

Dividend-paying stocks, such as property trusts, rose, as investors looked for yield in a low interest rate environment, Smalley said. Kiwi Property Group advanced 1.6 percent to $1.30. Precinct gained 1.3 percent to $1.195. Goodman Property Trust climbed 1.3 percent to $1.195.

Orion Health Group dropped 2.1 percent to a post-float low of $4.55.

Kathmandu Holdings, the outdoor goods retailer, was the worst performer on the benchmark index, declining 1.5 percent to $1.34.

Telecommunications retailer Spark New Zealand rose 0.2 percent to $2.98. Fletcher Building, the construction and building supplies company, gained 0.9 percent to $8.32.

Outside the benchmark index, New Zealand Oil & Gas fell 0.9 percent to 57.5 cents. The oil and gas explorer has gained three directors on an expanded board at Cue Energy Resources after securing 48 percent of the ASX-listed energy company. NZOG made a hostile takeover bid for Cue at 10 Australian cents a share after buying 19.99 percent of the company in December from Todd Energy and has then picked up further stakes from shareholders including Todd and Zeta Resources, the latter controlled by NZOG director Duncan Saville.

Scott Technology was unchanged at $1.38 after the industrial automation firm posted a 40 percent gain in first-half profit to $1.1 million as sales from recent acquisitions helped drive revenue growth.

Smiths City Group was unchanged at 53 cents after the Christchurch-based retail chain named Roy Campbell as chief executive, replacing Rick Hellings, who departs after 15 years as managing director.

52mil users affected by Google+’s second data breach
Google+ APIs will be shut down within the next 90 days, and the consumer platform will be disabled in April 2019 instead of August 2019 as originally planned.
GirlBoss wins 2018 YES Emerging Alumni of the Year Award
The people have spoken – GirlBoss CEO and founder Alexia Hilbertidou has been crowned this year’s Young Enterprise Scheme (YES) Emerging Alumni of the Year.
SingleSource scores R&D grant to explore digital identity over blockchain
Callaghan Innovation has awarded a $318,000 R&D grant to Auckland-based firm SingleSource, a company that applies risk scoring to digital identity.
IDC: Standalone VR headset shipments grow 428.6% in 3Q18
The VR headset market returned to growth in 3Q18 after four consecutive quarters of decline and now makes up 97% of the combined market.
Spark Lab launches free cybersecurity tool for SMBs
Spark Lab has launched a new tool that it hopes will help New Zealand’s small businesses understand their cybersecurity risks.
Preparing for the future of work – growing big ideas from small spaces
We’ve all seen it: our offices are changing from the traditional four walls - to no walls. A need to reduce real estate costs is a key driver, as is enabling a more diverse and agile workforce.
Bluetooth-enabled traps could spell the end for NZ's pests
A Wellington conservation tech company has come up with a way of using Bluetooth to help capture pests like rats and stoats.
CERT NZ highlights rise of unauthorised access incidents
“In one case, the attacker gained access and tracked the business’s emails for at least six months. They gathered extensive knowledge of the business’s billing cycles."