Mixed close for New Zealand sharemarket

Written by admin on 30/07/2019 Categories: 苏州美睫

The New Zealand sharemarket has been mixed as investors adjust their portfolios ahead of the Genesis Energy listing.


The NZX 50 Index rose 1.529 points, or 0.03 per cent, to 5123.901 on Friday. Within the index 16 stocks rose, 21 fell and 13 were unchanged. Turnover was $113.7 million.

Genesis, New Zealand’s largest electricity retailer by customer base, is the last on the block in the government’s partial privatisation programme which saw it sell minority holdings in Meridian and Mighty River Power.

Genesis stock may be in demand because of its high dividend yield, with 40 per cent set aside for institutional investors, and the remaining nine per cent for retail.

Meridian rose 2.2 per cent to $1.15. Mighty River gained 0.5 per cent to $2.17, while Auckland lines company Vector climbed 1.2 per cent to $2.50.

Contact Energy declined 0.9 per cent to $5.30.

Some investors “have had to get their weight up by buying some of the existing energy stocks on the market,” said James Smalley, a broker at Hamilton Hindin Greene.

“They’d been deliberately underweight anticipating to get proper weighting through Genesis but with the price and interest in Genesis a number of funds won’t get anything near what they’re after.

“If we are seeing some selling in our local market it’s due to people raising funds on the retail side for the Genesis IPO,” Mr Smalley said.

Xero snapped a seven day decline to advance 1.6 per cent to $37.80 after the cloud-based accounting software firm said its annual subscription revenue rose 84 per cent.

Fletcher Building, New Zealand’s largest listed company, rose 0.7 per cent to $9.59.

Units in the Fonterra Shareholders’ Fund, which give investors access to the co-operative’s dividend stream, declined 1.4 per cent to $6.20.

The world’s largest dairy exporter was fined $300,000 by Wellington District Court for breaches in the Animal Products Act after last year’s botulism scare led to a global recall.

Comments Off on Mixed close for New Zealand sharemarket