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 0.7199 0.0021 0.29%
AUD 0.9357 0.0030 0.32%
EUR 0.6826 0.0021 0.31%
GBP 0.5778 0.0014 0.24%
HKD 5.5847 0.0144 0.26%
JPY 81.4580 0.0370 0.05%

Commods

Commodity Price Change Time
Gold Index 1237.4 1.710 2017-02-22T00:
Oil Brent 55.9 -0.820 2017-02-22T00:
Oil Nymex 53.6 -0.760 2017-02-22T00:
Silver Index 17.9 -0.050 2017-02-22T00:

Indices

Symbol Open High Last %
NZX 50 7062.5 7100.8 7062.5 0.38%
NASDAQ 5857.6 5864.4 5865.9 -0.09%
DAX 11994.1 12016.0 11998.6 -0.05%
DJI 20715.4 20781.6 20743.0 0.16%
FTSE 7302.2 7308.3 7302.2 -0.07%
HKSE 24122.2 24216.5 24202.0 -0.36%
NI225 19379.9 19379.9 19379.9 -0.04%
ASX 5805.1 5805.1 5805.1 -0.35%