SKY TV control room. Photographed at thier Mt Wellington office. New Zealand Herald Photograph By Greg Bowker
SKY TV control room. Photographed at thier Mt Wellington office. New Zealand Herald Photograph By Greg Bowker
New Zealand shares rose as a weakening Kiwi dollar and demand for dividends boosted equities. Meridian Energy, Fletcher Building and Fisher & Paykel Healthcare advanced. Sky Network Television plunged after forecasting a drop in profit.
The S&P/NZX 50 Index rose 22.76 points, 0.4 per cent, to 5918.25. Within the index,34 stocks rose, 10 fell, and six were unchanged. Turnover was $190 million.
The benchmark index extended Tuesday's 1 per cent gain in broad-based buying, as investors sought dividend-paying equities in the face of interest rates staying low for longer. Meanwhile, a decline overnight in the Kiwi dollar boosted sentiment for export-based stocks which earn their cash overseas.
Fletcher Building, which has Australian exposure, led the benchmark index higher up 2.8 per cent to $7.36. Meridian climbed 2.3 per cent to $2.26.
Fisher & Paykel Healthcare advanced 1.7 per cent to $7.67. Genesis Energy rose 1.6 per cent to $1.885. Argosy Property gained 1.4 per cent to $1.115. Ebos, which earns much of its income across the Tasman, advanced 1.9 per cent to a fresh record high of $14.
"If I look at all the electricity producers they're all looking quite solid and they're always a bit of a bellwether for the dividend-yield stocks," said Grant Williamson, director at Hamilton Hindin Greene. "There are other stocks that have moved on the back of the currency ... it's not just yield stocks, it seems to be pretty much across the board that investors are buying into this market."
Sky TV was the worst performer on the benchmark, falling 10.5 per cent to $4.68. New Zealand's dominant pay TV provider expects profit will fall as much as 11 per cent in the 2016 financial year to between $153 million and $158 million, with largely flat revenue and increased capital expenditure. The company is battling to retain customers against the rise of on-demand streaming services, such as US content provider Netflix.
"It's been a worry for investors for a while now, obviously the competition in the streaming space will have an effect on Sky TV," Williamson said. "Investors are being pretty cautious and a number of them hopping out of that stock."
The company's largest shareholder, Freedom Foods Group, has reduced its stake in the company to 10.4 per cent from 17.9 per cent after its punt at a takeover was rejected.
"A little bit of a surprise there - Freedom Foods sold down but is still retaining a stake," Williamson said.
Outside the benchmark index, Tenon rose 6.5 per cent to $2.45 after it said underlying earnings doubled in the first quarter to US$6 million and are on track to meet its US$20 million target for the full year.
On the NZ Alternative Index, Snakk Media rose 2.1 per cent to 4.8c. The company, which aggregates publishers' ad space on mobile devices and matches it to advertisers' demand, posted its maiden quarterly earnings result as sales rose 13 per cent. It reported earnings before interest, tax, depreciation and amortisation (ebitda) of $50,541 in the three months ended September 30, compared to an ebitda loss of $1.24 million a year earlier.
