#NZ shares rise to new two-month high

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New Zealand shares rose, pushing the NZX 50 Index to a new two-month high as Auckland International Airport announced increased traffic with Asia, SkyCity Entertainment rose and Fletcher Building benefited from offshore interest.
The NZX 50 gained 33.076 points, or 0.7%, to 4556.767. Within the index, 20 stocks rose, 17 fell and 13 were unchanged. Turnover was $91.6 million.
Auckland Airport, the nation’s busiest gateway, climbed 3.5% to $3.09 after saying China Southern Airlines is increasing flights on Guangzhou to Auckland route. That follows the announcement last week that Malaysia Airlines would begin seasonal daily flights. The stock is trading at 23.2 times forecast earnings, according to Reuters data.
The news about more Asian flights «is another tick in the box» for the airport, said Rickey Ward, equities manager at Tyndall Investment Management. Still, he said, the airport «is trading at very high multiples.»
SkyCity, which has inked a heads of agreement with the government over its deal to build an Auckland convention centre in exchange for increased gambling concessions, rose 2.6% to $4.38.
Fletcher Building, the construction and building products group, gained 1.8% to $8.66.
Tyndall’s Ward said while local investors are concerned earnings may be disappointing because of a slower Australian market, «international investors are tending to look through this weaker period.»
Xero, the cloud-based accounting company, rose 2.3% to $17.80. The shares have risen almost 1,900 percent in the past five years, though it is yet to make a profit.
«Most rational people believe it is almost farcical,» Ward said. «They don’t understand how to value it.»
Ryman Healthcare rose 0.7% to $6.85, a record high. Rival retirement village operator Summerset Group gained 1 percent to $3, extending its gains since the company reported strong sales growth this week.
Retailers were generally weaker. Kathmandu, the outdoor equipment chain, fell 3.7% to $2.60, Michael Hill International dropped 1.5% to $1.31 and Warehouse Group fell 1.1% to $3.75. Hallenstein Glasson Holdings declined 0.2% to $4.97.
«The retail sector is ripe for issuing some more negative news,» Ward said.
Air New Zealand was unchanged at $1.44 after the national carrier’s bid for a five-year extension to its alliance with Virgin Australia was trimmed to three years by the Australian Competition and Consumer 
Commission in a draft decision. The Australian antitrust regulator wants to impose conditions on some routes.
Units in the Fonterra Shareholders’ Fund fell 0.3 percent to $7.35 after Fonterra Cooperative Group said milk collection was down 12% to 8.4 million kilograms of milk solids in June from a year earlier.
NZX was unchanged at $1.35 after the latest addition to the stock market, Synlait Milk, said it will sell shares at $2.20 apiece, valuing it at $322 million. The Rakaia-based milk processor will join the stock exchange on July 23.
NZAX-listed Chatham Rock Phosphate gained 2.9% to 35 cents after the company yesterday lodged an application under the Exclusive Economic Zone regime to proceed with plans to mine for phosphate on the Chatham Rise.
 
Source: TVNZ

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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