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NZ stocks up on Fonterra result

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Thu, 22 Sep 2011 8:17p.m.

The NZX 50 Index rose 3.45 points (0.1 per cent) to 3,312.28 (file pic)

The NZX 50 Index rose 3.45 points (0.1 per cent) to 3,312.28 (file pic)

New Zealand stocks rose slightly today, recovering from early losses as the weaker kiwi dollar and Fonterra Cooperative Group's record payout offset negative sentiment from the US and weaker GDP growth.

The NZX 50 Index rose 3.45 points (0.1 per cent) to 3,312.28.

"The biggest influence at the moment is the New Zealand dollar, which is under 80 US cents, and the strong result from Fonterra," said Greg Easton, an adviser with Craigs Investment Partners.

"That money will eventually flow through into the broader economy and is reflective of the general positivity out there."

Fonterra Cooperative Group, the world's largest exporter of dairy products, posted record sales, profit and farmer payout for the 12 months ending July 31, as rising milk production coincided with strong global demand.

F&P Healthcare rose 3.5 per cent to $2.38 after the company said workers at its Highbrook plant in Auckland had rejected its latest pay offer, but both parties were returning to the negotiating table.

Vital Healthcare Property Trust rose 2.7 per cent to $1.16 after it said ANZ Banking Group had taken a 9 per cent stake.

Other property stocks were also in the spotlight today, with their defensive nature and high yields attracting attention of investors in a climate of low interest rates and high volatility.

Property For Industry rose 2.6 per cent to $1.18, DNZ Property Fund rose 1.6 per cent to $1.28, and Kiwi Income Property Trust, the country's biggest real estate investment trust, rose 1.4 per cent to $1.075.

Restaurant Brands, which operates the KFC, Starbucks and Pizza Hut franchises in New Zealand, fell 4.6 per cent to $2.10, coming under pressure after it reported a 6.5 per cent decline in second quarter sales earlier this week.

NZN

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Comments

24 Sep 2011 04:55p.m.

Mike wrote:

Farming isn't hard work, and almost anyone (including the complainers) could do it. But the drawback is the pay is generally minimum wage or less, and long hours. While its not hard, working long hours for low pay isn't easy either. Most of the productivity of farming in NZ is on low pay, ie farming families working for below minimum wage.

Of course even cows are like people in they respond to how farmers treat them. You get a total as***** of a farmer and in the milking shed cows will tend to defecate on such a farmer out of all proportion. A farmer that treats the cows better will find milking a much cleaner job. If you take the average complainer, if they did a few hours in a milking shed, they would come out looking like they had been swiming in an effluent pond. The the average bovine is a lot smarter than town-folk give them credit for.

How bad is the price of dairy today?
If one eats cereal and milk for breakfast, say 200ml of milk and 50 gm of cereal as a serving even todays prices this works out about 68 cents/serving if buy a fair quality cereal and a lower priced but quality milk. So when someone says they can't afford to buy milk, they are talking garbage. Milk is still a cheap and healthy option in food.

PS Fonterra suppliers still buy/pay for Dairy like the rest of us, and even though they typically have some of the lowest incomes in NZ over the last 20 years.

23 Sep 2011 04:33p.m.

Aunty Helen wrote:

Suck it up Blake. Fonterra just saved this country from sliding into recession - AGAIN. Get up at 4am, make the investment and you can drink all the milk you want too.

22 Sep 2011 09:52p.m.

Blake wrote:

Keep ripping us off Fonterra. Keep thinking that you are doing no wrong and that all your pricing and your data and your reports are ethical and fair and just. Glad that you and all the dairy farmers can enjoy all the milk and cheese and sour cream you want while the rest of us have to reduce our intake due to your high prices that you deny. So raise your prices even more after the freeze. Want to make sure that the next pay out is a huge one as well and your profits climb up and up and up. Thanks a bunch, great job.