BUSINESSDESK: New Zealand shares rose, led by companies with relatively high dividend yields such as Telecom as low interest rates worldwide stoke demand for assets offering bigger returns.
The NZX 50 Index rose 19.71 points, or 0.5%, to 3916.365. Within the index, 22 stocks rose, 18 fell and 10 were unchanged. Turnover was $67.5 million.
Telecom, the biggest company on the bourse, advanced 2.4% to $2.38 and has a dividend yield of 12.8%.
"Investors are looking for yield and New Zealand still offers yield," says Keith Poore, head of investment strategy at AMP Capital (NZ), which has $16 billion of New Zealand assets under management. "Despite the rally that we've seen, valuations in equity markets relative to bonds are still favourable."
The number of mobile broadband subscribers rose 34% to 2.5 million in the 12 months ended June 30 compared to a year earlier, the annual government Internet Service Provider Survey shows.
PGG Wrightson, the nation's biggest rural services company, rose 2.9% to 36 cents. Guinness Peat Group, the investment company selling down its portfolio, was up 2.8% to 55 cents.
Mainfreight, the transport and logistics company, gained 1.7% to $10.63.
GuocoLeisure, the investment group once known as Brierley Investments, rose 1.6% to 64 cents after reporting profit of $US23.2 million in the three months ended September 30, from $US24.1 million a year earlier. Sales rose to $US104.5 million from $US96.8 million.
Fisher & Paykel Appliances fell 0.8% to $1.22. Chinese manufacturer Haier's bid to take control of whiteware maker Fisher & Paykel Appliances is too low and it wants to be paid full value for its stake, says AMP Capital Investors (New Zealand) portfolio manager Douglas Lau. AMP won't be accepting the offer.
Blis Technologies was unchanged at 0.7 cents after saying its K12 oral health probiotic proven to crowd out 'bad' bacteria in humans is to be tested as a treatment for dog bad breath.
The Dunedin-based NZX-listed bioscience company said the recent success of a first phase trial on dogs has encouraged an expanded trial. The shares are down 78% this year.
OceanaGold, which operates the Macraes gold field, fell 4.4% to $4.11.
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