NZ stocks soar past four year high
The New Zealand share market broke through the 4000 point market today as the strong streak of investors chasing higher yields in equities continued.
Whiteware manufacturer and exporter Fisher & Paykel Appliances saw a higher takeover bid from Haier which sent volumes flowing through the stock as interest in it increased.
The NZX50 index rose 1 per cent or 38.13 points to 4003.31 points, exceeding the four year high reached earlier this week.
Within the index, 36 stocks rose, six fell and eight were unchanged.
Goldman Sachs JBWere institutional broker Peter Sigley said one of the highlights of the market was Fletcher Building, up 3.4 per cent to $7.60.
"It was up on the back of announcements of positive macro-data that we saw out of the United States on housing overnight [new house construction up 15 per cent in year to September]. It has been volatile lately but went through the roof on that," Sigley said.
"The second highlight was Fisher & Paykel Appliances' takeover bid by Haier getting over the line by upping their offer to an acceptable range [$1.28 a share up from $1.20 earlier]. The stock was up [2.4 per cent to $1.27] on huge volume."
The leading gainer was the markets operator NZX Limited, up 3.4 per cent to $1.21. Insurer Tower was up 2.7 per cent to $1.89. Goodman Property Trust rose 1.9 per cent to $1.07. Contact Energy was up 1.7 per cent to $5.40.
New Zealand Refining rose 1.45 per cent to $2.80. Would-be bank Heartland was up 1.45 per cent to 70c. Retailer The Warehouse rose 1.3 per cent to $3.16. Telstra Corp was up 1.2 per cent to $5.09. Rubber goods and milking equipment manufacturer Skellerup rose 1.2 per cent to $1.70.
Pay TV operator Sky Network Television rose 1 per cent to $3.94 as its annual meeting today had earlier guidance confirmed.
Australian food ingredient maker Goodman Fielder was down 2.9 per cent to 67c. International trucking and logistics company Mainfreight was down 1.65 per cent to $10.72. Chorus fell 1.1 per cent to $3.46.
Port of Tauranga fell 1 per cent to $12.92. Pumpkin Patch was down 0.8 per cent to $1.22 and Air New Zealand fell 0.8 per cent to $1.25.
"There is a lot of cash sitting on the sidelines looking for an excuse to get into the markets and New Zealand has been seen as a safe haven for a while now," Sigley said.