Market hits 12-year peak

CATHERINE HARRIS
Last updated 18:27 07/03/2013

Relevant offers

Market Data

Finance and business diary Job-match website testing Kiwi waters Markets acting nervous as Fed officials convene Asian shares pinned near 5-month lows Aussie shares stage comeback Overvalued kiwi dollar 'a concern' Wall St closes lower on Fed concerns NZX falls in morning trade Sharp Air NZ share price slump under scrutiny NZX reappointed to world exchange body

The New Zealand sharemarket rose to its highest point in at least 12 years, driven by momentum from the Sky TV selldown and a clutch of corporate results.

The NZX-50 index rose by 0.83 per cent, or 36 points, to 4333 at 5pm, the highest point seen since at least 2001, one broker said.

Conversely the New Zealand dollar eased to US82.75 cents, down from US83.29c at 5pm yesterday,  as the greenback gained strength on an upbeat US job report.

The Trade Weighted Index, drawn from a basket of major trading partners’ currencies, was dropped to 76.14 compared with 76.30 yesterday. David Price, senior broker at Forsyth Barr, said continued low interest rates were forcing to investors to look elsewhere for higher returns. But his analysis was starting to show the sharemarket was getting overheated.

‘‘It is starting to get pretty stretched on valuation and we run an indicator and it’s only in the last 20 years breached this indicator four times, and it breached it today.’’

The Sky deal had been ‘‘swallowed up’’ strongly, rising 13c today to $5.20. Other big gainers includecd Xero, up 5.5 per cent or 45c to $8.59, Diligent up 25c to $5.65, and Contact, up 14c to $5.39.

Heavyweights also rose across the board, with Auckland Airport up 4c to $2.87, Chorus up 3c to $2.87, Fletcher Building up 8c to $9.26 and Telecom up 4.5c to $2.35.

Shares in retail group Briscoe jumped 10c to $2.40 after announcing an 11 per cent rise in annual net profit, partly due to growing online sales.

It was in line with Forsyth Barr’s expectations but showed the company was handling the economic conditions ‘‘extremely well,’’ Price said.

Fastfood and coffee shop company Restaurant Brands, whose shares fell 2c to $2.82, had also provided a result with ‘‘no real surprises’’. I

Its fourth quarter sales rose 4.5 per cent, reflecting stronger sales at Pizza Hut and consumer interest in the new Carl’s Jr stores.

Also on the decline was Trade Me, down 3c to $4.91 but Price said that was fairly inconsequential for the popular online website.

On the currency crosses, the kiwi was recently trading at 80.76c Australian cents,  dow from A80.92 at 9am. It was trading 77.63 against the yen, at 55.15 British pence, and was 0.6370 against the euro. The 90-bill rate was 2.67 per cent.

Sky TV selldown and a clutch of corporate results.

The NZX-50 index rose by 0.83 per cent, or 36 points, to 4333 at 5pm, the highest point seen since at least 2001, one broker said.

Ad Feedback

Conversely the New Zealand dollar eased to US82.75 cents, down from US83.29c at 5pm yesterday,  as the greenback gained strength on an upbeat US job report.

The Trade Weighted Index, drawn from a basket of major trading partners’ currencies, was dropped to 76.14 compared with 76.30 yesterday. David Price, senior broker at Forsyth Barr, said continued low interest rates were forcing to investors to look elsewhere for higher returns. But his analysis was starting to show the sharemarket was getting overheated.

‘‘It is starting to get pretty stretched on valuation and we run an indicator and it’s only in the last 20 years breached this indicator four times, and it breached it today.’’

The Sky deal had been ‘‘swallowed up’’ strongly, rising 13c today to $5.20. Other big gainers includecd Xero, up 5.5 per cent or 45c to $8.59, Diligent up 25c to $5.65, and Contact, up 14c to $5.39.

Heavyweights also rose across the board, with Auckland Airport up 4c to $2.87, Chorus up 3c to $2.87, Fletcher Building up 8c to $9.26 and Telecom up 4.5c to $2.35.

Shares in retail group Briscoe jumped 10c to $2.40 after announcing an 11 per cent rise in annual net profit, partly due to growing online sales.

It was in line with Forsyth Barr’s expectations but showed the company was handling the economic conditions ‘‘extremely well,’’ Price said.

Fastfood and coffee shop company Restaurant Brands, whose shares fell 2c to $2.82, had also provided a result with ‘‘no real surprises’’. I

Its fourth quarter sales rose 4.5 per cent, reflecting stronger sales at Pizza Hut and consumer interest in the new Carl’s Jr stores.

Also on the decline was Trade Me, down 3c to $4.91 but Price said that was fairly inconsequential for the popular online website.

On the currency crosses, the kiwi was recently trading at 80.76c Australian cents,  dow from A80.92 at 9am. It was trading 77.63 against the yen, at 55.15 British pence, and was 0.6370 against the euro. The 90-bill rate was 2.67 per cent.

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content