NZ sharemarket rises slightly
The New Zealand sharemarket posted modest gains today after offshore markets rose and the Reserve Bank said the official cash rate was likely to remain appropriate for some time.
The New Zealand sharemarket posted modest gains today after offshore markets rose and the Reserve Bank said the current level of the official cash rate was likely to remain appropriate for some time.
The benchmark NZX-50 index closed up 11.717 points, or 0.3%, at 3503.76 after opening up around 4.02 points.
The market opened after Reserve Bank Governor Alan Bollard left the official cash rate unchanged at 2.5%.
"Investors are chasing yield with the potential for interest rates to stay lower. I think we will see bank term deposits being converted into equities," said Grant Williamson, director at Hamilton Hindin Greene.
Telecom rose 7c to 218.5 and SkyCity rose 5c to 353 and property trusts were firm. Contact Energy rose as high as 600 and closed down a cent at 585 after announcing rights issue at 505 to raise $350 million.
Mr Williamson said the issue had been well flagged. "It is only a 1:9 so it is not a huge burden on shareholders and I think investors like the story," he said.
Otherwise, the market was firmer on the back of higher offshore markets and a fall in the New Zealand dollar against the Australian dollar was also helpful to exporters.
Fletcher Building gained 2c to 916, NZX rose 3c to 227 and Vital Healthcare rose 2c to 113. The Warehouse rose 3c to 360 and TrustPower rose a cent to 752.
Restaurant Brands eased 3c to 246 and NZ Refining eased 3c to 438. Mainfreight eased 5c to 925. Xero fell 6c to 250. Goodman Fielder fell 13c to 144 after its cut its profit forecast today.
OceanaGold rose 22c to 372 ahead of its first-quarter profit result after the Australian market closes.
NZPA
Thu, 28 Apr 2011
Thu, 28 Apr 2011
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NZ sharemarket rises slightly
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