Market close: Shares rise as dividend yields draw investors

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)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7252 0.0007 0.10%
AUD 0.9625 0.0002 0.02%
EUR 0.6499 0.0005 0.08%
GBP 0.5518 -0.0015 -0.27%
HKD 5.6239 0.0055 0.10%
JPY 74.8440 0.3240 0.43%

Commods

Commodity Price Change Time
Gold Index 1307.9 -5.100 2016-08-31T00:
Oil Brent 46.9 -1.840 2016-08-31T00:
Oil Nymex 44.7 -1.630 2016-08-31T00:
Silver Index 18.6 0.040 2016-08-31T00:

Indices

Symbol Open High Last %
NZX 50 7405.6 7405.6 7398.8 -0.27%
NASDAQ 5216.4 5219.9 5223.0 -0.19%
DAX 10627.2 10666.8 10657.6 -0.61%
DJI 18436.7 18439.7 18454.3 -0.29%
FTSE 6820.8 6832.9 6820.8 -0.58%
HKSE 22897.2 23065.2 22976.9 0.22%
NI225 16885.2 16931.4 16887.4 0.13%
ASX 5433.0 5433.0 5433.0 -0.25%

Most listened to