Share buyback, higher dividend and fewer claims please investors in the company
New Zealand shares rose, led by Tower, after the general insurer lifted its dividend. Dual-listed stocks such as Fletcher Building and a2 Milk Co advanced as stocks on the ASX gained.
The NZX 50 Index rose 0.87 points, or 0.02 per cent, to 5795.85. Within the index, 20 stocks rose, 27 fell and three were unchanged. Turnover was $104 million.
Tower led the benchmark index higher, rising 4.3 per cent to $2.20 after it lifted its interim dividend and confirmed an on-market share buyback, while reporting a 36 per cent gain in first-half earnings driven by rising premiums and fewer claims.
“What investors were very happy about was the increase in dividend,” said Grant Williamson, director at Hamilton Hindin Greene. “The insurers are in a pretty good spot now with premiums much higher, as most of us are aware. Barring any major catastrophes they could be in a pretty good environment.”
Across the Tasman, Australia’s ASX/S&P 200 Index climbed during trading amid reports that Australia’s third-largest iron ore miner, Fortescue Metals, is in talks with a Chinese investor interested in taking a strategic stake. The good sentiment flowed through to dual-listed stocks, Williamson said yesterday.
“Australia’s quite firm and that’s helped us today.”
Fletcher Building
advanced 0.8 Shares in Fletcher Construction improved by 0.8 per cent yesterday to close at $8.64.
A2 Milk per cent to $8.64. per cent to 52c.
Orion Health fell 0.4 per cent to $4.83. The healthcare system software developer reported a $60.8 million loss in the year ended March
gained 2 31, in line with its strategy to lift revenues before becoming profitable. Annualised revenue growth beat its prospectus forecast.
SkyCity Entertainment Group declined 0.9 per cent to $4.35. The casino operator has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs, including land, might be $450 million to $470 million.
Contact Energy fell 1.3 per cent to $6.10, paring Monday’s 11 per cent jump. The energy generator and retailer said it had ditched plans for now to invest in geothermal schemes overseas and would increase returns to shareholders, including a special dividend of 50c a share, payable on June 23, and a new ordinary dividend payout ratio of 100 per cent of underlying earnings after tax.
Outside the benchmark index, Scott Technology was unchanged at $1.37 after confirming it had laid off 13 workers as the automation firm looks to cut numbers at its Christchurch plant after taking on extra employees during a bumper year.
Green Cross Health dropped 3.2 per cent to $2.41.