Kiwi shares hits fresh record

  • 03/11/2015
Kiwi shares hits fresh record

New Zealand shares rose to a fresh record as investors sought dividend-paying stocks. Spark New Zealand, Fletcher Building and Auckland International Airport advanced.

The S&P/NZX 50 Index gained 38.14 points, or 0.6 percent, to 6021.98. Within the index, 28 stocks rose, 16 fell and six were unchanged. Turnover was light at $98.5 million.

The NZX 50 rose about 7 percent in October, the biggest monthly gain since July 2009, touching new records as volatility in international markets abated, renewing demand for equities in a low interest rate environment.

Blue chip kiwi stocks rose, as offshore investors looking for yield were lured to the local market.

Spark, the telecommunications provider held by international investors for its liquidity, advanced 1.8 percent to $3.45, its highest since February.

Fletcher Building gained 1.9 percent to $7.47. Auckland International Airport climbed 2.4 percent to a three month high of $5.53.

Genesis Energy gained 0.3 percent to $1.88. Meridian Energy rose 0.5 percent to $2.205.

Xero led the benchmark index higher, up 4.4 percent to a three month high of $16.70.

Trustpower fell 1.2 percent to $7.65 after it offered a "fair price" in its $126.6 million takeover of King Country Energy, a bolt-on acquisition that will lift the utility company's customer base by about 7 percent and adding significant electricity generation capacity.

The transaction was "interesting and positive" for Trustpower and was at a fair price, especially as Trustpower "trades on much higher multiples than King Country Energy does," said Paul Harrison, who helps manage more than $700 million of New Zealand and Australian equities at Salt Funds Management.

Westpac Banking Corp rose 3.3 percent to $33.45.

Skellerup Holdings was the worst performer on the benchmark index, down 3.3 percent to $1.49.