NZX50 gains as low rates boosts confidence
Fri, 27 Jan 2012 9:05p.m.
New Zealand shares gained for a third day as the prospect of globally low interest rates for an extended period stoked investors' appetite for riskier assets.
Fletcher Building paced gainers on Friday.
The NZX 50 Index rose 12.97 points, or 0.4 per cent, to 3294.64.
The local stock market followed Australia's S&P/ASX 200 index, which gained 0.5 per cent to 4292.9 in afternoon trading.
"The Australian market bounce gave a bit of confidence back into things," said Shane Solly, portfolio manager at Mint Asset Management.
"Markets are all about the Federal Reserve's low interest for a very long time and that's giving a boost to equities and riskier assets at the moment."
Fletcher Building gained 2.2 per cent to $6.54 as it continues to bounce back from last month's lows when it was "overly weak," Mr Solly said.
Fellow index heavyweight Telecom fell 1.6 per cent to $2.095.
The dual-listed Australian financial services firms gained, with AMP up 1.5 per cent to $5.55, and Australia & New Zealand Banking rising 1.8 per cent to $28.
The prospect of the partial floats of the state-owned energy companies helped bolster confidence, and the Treasury announced the joint lead managers running the first sale of Mighty River Power in the third quarter of the year.
Stock exchange operator NZX was unchanged at $2.61.
Rival power company Contact Energy gained 0.4 per cent to $4.77, as it continues to bounce back from an eight-and-a-half year low it touched earlier this week.
Rakon was the biggest gainer, up 9.7 per cent to 68 cents, the highest level since November 14, extending its weekly rally to 12 per cent.
Fisher & Paykel Appliances rose 4.4 per cent to 35.5 cents, while gold miner OceanaGold advanced 3.3 per cent to $3.10.
Post a Comment
Before commenting, please take the time to read our moderation guide
(Won't be published)
NZ needs a "plan B" for when dairy exports are no longer abl...
The Warehouse is planning to expand its online presence and ...
Some analysts agree with Yahoo's boss Marissa Mayer that the...
Federal Reserve boss Ben Bernanke has delivered his much-ant...
A multi-million-dollar dispute involving one of the country'...
Copyright © 2013 MediaWorks TV. All Rights Reserved.