Market close: Shares rise as dividend yields draw investors

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Telecom rises as the nation's relatively high dividend yields draw investors but Infratil falls after taking a charge against its British airport investments.

The NZX 50 fell 2.66 points, or 0.1%, to 3957.91. Within the index, 22 stocks rose, 16 fell and 12 were unchanged. Turnover was a lower-than-average $70.6 million.

"Savers are being penalised," says David Price, a broker at Forsyth Barr. "People are being forced off the sidelines and into high risk investments than normally. It's a global phenomenon. New Zealand is one of the high-yielding markets."

Telecom rose 1.3% to $2.41. At today's price it has a dividend yield of 12.5%, while a one-year term deposit offers about 4.27%.

Fisher & Paykel Appliances, which gets more than 50% of sales in US dollars, rose 1.3% to $2.43 as the kiwi held near a two-week low at 81.60 US cents.

Infratil fell 0.5% to $2.18. The company took a $43.9 million charge to write down the carrying value of the Glasgow Prestwick and Kent airports, which will be reflected in the first-half net profit, the company says in a statement.

The investment firm is trying to sell the unprofitable airports and has already written down their value by $60.4 million in the past two financial years.

"There's been a for-sale sign there for quite some time," Mr Price says.

Fletcher Building, the biggest construction and building materials group on the NZX 50, fell 1.4% to $7.24 even after Real Estate Institute figures showed home sales rose last month and the national median house price hit a record.

Air New Zealand, the government-controlled airline slated for a partial selldown, rose 0.8% to $1.24, with 9.6 million shares changing hands, the biggest daily volume since July 2008.

AMP, the Australian wealth manager, was up 3.2% to $5.89 and Auckland International Airport fell 0.8% to $2.655. OceanaGold, operator of the Macraes gold field, rose 2.8% to $4.42.

TrustPower, the utility controlled by Infratil, was up 1.6% to $8.53 and PGG Wrightson fell 2.9% to 33 cents.

Among smaller stocks, Windflow Technology dropped 21% to 15 cents, while AWF Group climbed 1.6 % to $2.50.

Contact Energy fell 0.2% to $5.35 and carpet maker Cavalier shed 1.1% to $1.85.

(BusinessDesk)


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NZ Market Snapshot

Forex

Sym Price Change
USD 0.6649 -0.0033 -0.49%
AUD 0.8917 0.0017 0.19%
EUR 0.6047 0.0043 0.72%
GBP 0.4275 -0.0016 -0.37%
HKD 5.1563 -0.0304 -0.59%
JPY 81.0130 -1.0840 -1.32%

Commods

Commodity Price Change Time
Gold Index 1163.5 -2.500 2015-07-02T00:
Oil Brent 62.6 -0.180 2015-07-02T00:
Oil Nymex 56.9 -0.010 2015-07-02T00:
Silver Index 15.6 -0.015 2015-07-02T00:

Indices

Symbol Open High Last %
NZX 50 5840.9 5840.9 5840.9 -1.10%
NASDAQ 5024.3 5027.5 5013.1 -0.08%
DAX 10825.1 10996.5 11058.4 -1.22%
DJI 17763.3 17825.5 17757.9 -0.16%
FTSE 6585.8 6585.8 6585.8 -0.43%
HKSE 26084.0 26261.5 26064.1 -3.18%
NI225 20200.2 20310.7 20539.8 -2.08%