Investore Property leads shares higher
New Zealand shares rose after the three-day weekend, led by A2 Milk, Fisher & Paykel Healthcare and Sky Network Television. Cavalier jumped after giving guidance for improved full-year earnings.
The S&P/NZX 50 Index rose 120.88 points, or 1.4 per cent, to 8757.04. Within the index, 41 stocks rose, seven fell and two were unchanged. Turnover was $159 million.
rose 5.3 per cent to $11. The milk marketer has fallen from a peak of $14.62 in late February on worry at increased rivalry in the Chinese market and on disappointment margins haven’t grown as fast as sales.
“It’s a company that’s had pretty good growth but has disappointed in the rate of growth and so the shares have come slowly back,” said Rickey Ward, NZ equity manager at JBWere. He said A2 might also have benefited from Fonterra Cooperative Group’s comment that strong demand out of China continues with imports across all key categories up for the 12 months to March.
Synlait Milk
rose 1.6 per cent to $11.14 while the fell 0.2 per cent to
holders’ Fund
$5.20.
Fonterra Share- Investore Property
gained 5.4 per cent to $1.57, leading the index higher. rose 2.9 per cent to $3.15 after saying it is considering offering up to $200m of seven-year
Meridian Energy
unsecured, unsubordinated fixed rate bonds to institutional and New Zealand retail investors.
JBWere’s Ward said other listed corporates might also look to tap the bond market “to take advantage of an investment community with a lot of cash and looking for places to invest” as a result of corporate activity such as the $438m takeover of NZX-listed Tegel Group by Philippines poultry group Bounty Fresh Foods and recent bond maturities.
Corporates might also want to raise debt capital to benefit from low interest rates, given the signs were that interest rates would rise, Ward said.
Carpetmaker Cavalier jumps 13% on profit forecast
F&P Healthcare Sky TV
to $13.91 and to $2.38.
Cavalier
rose 3.2 per cent rose 2.6 per cent
Kathmandu Holdings
was the worst performer, down 1.6 per cent to $2.42, while fell 1.4 per cent to $1.37. Outside the benchmark index,
jumped 13 per cent to 62c after the carpet maker forecast annual profit of $3.7m to $4m, from a loss the year before, driven by improved margins following restructuring and the benefits of more favourable wool prices.
“It was an upgrade in very low numbers,” Ward said. “But it has gone from a loss to a profit company so that’s not a bad thing.”
Kiwi Property Group