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)

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NZ Market Snapshot

Forex

Sym Price Change
USD 0.7976 0.0011 0.14%
AUD 0.9073 -0.0007 -0.08%
EUR 0.6283 0.0018 0.29%
GBP 0.4974 0.0031 0.63%
HKD 6.1859 0.0078 0.13%
JPY 85.3070 0.0680 0.08%

Commods

Commodity Price Change Time
Gold Index 1248.5 4.340 2014-10-21T00:
Oil Brent 86.2 0.820 2014-10-21T00:
Oil Nymex 82.5 -0.260 2014-10-21T00:
Silver Index 17.5 0.190 2014-10-21T00:

Indices

Symbol Open High Last %
NZX 50 5233.1 5284.3 5233.1 0.89%
NASDAQ 4359.2 4419.5 4316.1 2.40%
DAX 8934.5 8957.2 8887.0 0.09%
DJI 16406.0 16620.8 16399.7 1.31%
FTSE 6372.3 6382.5 6372.3 -0.16%
HKSE 23300.5 23460.8 23088.6 1.37%
NI225 15038.2 15195.8 14804.3 2.64%