NZ shares rise as kiwi falls

  • 19/08/2014

New Zealand shares have advanced, led by companies with trans-Tasman exposure as the kiwi dropped against the Australian dollar.

The NZX 50 Index rose 43.093 points, or 0.9 percent, to a two-week high of 5114.212 today.

Within the index, 31 shares rose, seven fell and 12 were unchanged. Turnover was $124.8 million.

The New Zealand dollar fell as low as 90.28 Australian cents, its lowest level since December, helping companies that have to bring revenue back across the Tasman and making NZ stocks look relatively cheap in Australian dollars.

Fletcher Building, which is due to post its full-year results tomorrow, rose 0.4 percent to $9.09.

The company said Ralph Norris, the former head of Commonwealth Bank of Australia, will take the chair of Fletcher Building in October, replacing the retiring Ralph Waters.

"One thing that has hurt them to a degree has been the strength of the New Zealand dollar in the translation of earnings from their foreign operations and also they tend to price their output against potential imports, so when the currency is very strong that does limit Fletcher Building's pricing power to a degree," said Matthew Goodson, managing director at Salt Funds Management.

Dual-listed stocks advanced. Xero, the cloud-based accounting software, led the benchmark index higher, up about 8 percent to $23, paring some of its 11 percent decline last week.

Spark, formerly known as Telecom Corp, advanced 2 percent to $2.875, Westpac 2.9 percent to $38.30 and ANZ Bank 2.3 percent to $36.31.

A2 Milk Co was the day's worst performer on the benchmark index, dropping 1.5 percent to 64 cents ahead of tomorrow's GlobalDairyTrade auction.


source: newshub archive