Dip in global bonds boosts local index
Decline spurs hunt for dividends in NZ
New Zealand shares gained, led by Z Energy and Spark New Zealand, as a decline in global bond yields boosts the attraction of local stocks with high dividends. Telecommunications network operator Chorus fell.
The S&P/NZX 50 Index rose 28 points, or 0.4 per cent, to 7225.02. Within the index, 16 stocks rose, 27 fell and seven were unchanged. Turnover was $136 million.
Hobson Wealth Partners investment adviser Brad Gordon said the market had performed well consider- ing it is the beginning of a new quarter.
High yielding stocks benefited from the fact that 10-year Treasuries “have come off quite a bit”, he said.
The yield on US 10-year Treasuries was recently near 2.4 per cent, down from 2.6 per cent in mid-March.
Companies with relatively high dividend yields gained, with Z up 2.3 per cent to $7.12 and Contact Energy gaining 2 per cent to $5.16. Fisher & Paykel Healthcare added 1.6 per cent to $9.85, likely benefiting after the New Zealand dollar lost ground against the greenback late in the quarter, said Gordon. Spark, another company with a relatively high dividend yield, led the benchmark index higher, rising 3.1 per cent to $3.61. Chorus, which counts Spark as its biggest customer, fell 2.8 per cent to $4.20, the biggest decline on the benchmark index. Listed retirement village operators and initially fell last week as investors
Summerset Group Metlifecare
sought to free up some cash for Oceania but the market “may have realised the Oceania IPO is not as large as they were thinking it was”, said Gordon. Summerset Group added 0.2 per cent to $5.18 while Metlifecare rose 1.1 per cent to $6.20 and Ryman increased 1.2 per cent to $8.51.
continued to gain, adding 1.7 per cent to $3.04 as investors remain cheered on what looks to be a softening in China’s approach to goods sold through unofficial trade channels.
The biggest loser across the main board on the day was small-cap
which fell 14 per cent to $1.66 after the healthcare software developer said full-year sales fell but it still expects to post a narrower loss
A2 Milk Healthcare Orion Health,
and be profitable in 2018.
added 1.6 per cent to 63 cents. Earlier Cavalier Corp said Sarah Hipkiss has stepped down as chief financial officer with effect immediately. The carpet maker didn’t provide a reason for the resignation in its statement but said a process for the recruitment of a replacement for Hipkiss will get under way shortly.
shed 0.3 per cent to $1.61. The company announced it will pay $42 million a proposal for the industrial property investor to internalise the management contract, a deal Deloitte has deemed fair.
fund units rose 1 per cent to $6.12. Investors will shed rights to the 20 cents per unit interim dividend tomorrow.
Cavalier Corp Property for Industry Fonterra