NEW Zealand shares have gained as investors are drawn to companies with a growth story.
The NZX 50 Index gained 18.552 points, or 0.4 per cent, to 4735.611 on Monday. Within the index, 25 stocks rose, 15 fell and 10 were unchanged. Turnover was $149 million.
SkyCity rose 6.3 per cent to $3.89 on the prospects of growth in visitors from Asia to its Adelaide casino and hotel complex redevelopment, its operations in Queenstown and even its yet-to-be-built convention centre in Auckland.
«It really is a growth story, which is Chinese tourism,» said Greg Easton, adviser at Craigs Investment Partners.
Auckland International Airport, the nation’s busiest gateway, rose 1.7 per cent to $3.595.
Fonterra Shareholders’ Fund rose 2.3 per cent to $5.81 ahead of the GlobalDairyTrade auction this week.
The dairy giant unexpectedly held its milk payout forecast unchanged last year, as it faces a squeeze between high prices for milk and prices for cheese and casein that aren’t rising as much.
Chorus fell 2.7 per cent to $1.43 after a report by Ernst & Young Australia said options for coping with regulated price cuts on its copper lines while building the new UFB network include allowing service quality to drop by under-investing in maintenance and upgrades.
Communications Minister Amy Adams said Chorus could make up some of the funding shortfall «by implementing a number of cash flow savings initiatives».
«The report and the statements that came out along with it haven’t really given the market any more certainty about Chorus’s future,» Mr Easton said.
A new five-year high in the New Zealand/Australian dollar cross-rate weighed on companies with exposure across the Tasman.
Fletcher Building, the biggest company on the exchange, fell 2.3 per cent to $8.57, outdoor equipment chain Kathmandu dropped 2.7 per cent to $3.25 and clothing retailer Hallenstein Glasson declined 1.5 per cent to $3.41.
Source: The Australian