NZ stocks rise, Fletcher, Trade Me gain – Business News | TVNZ

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NZ stocks rise, Fletcher, Trade Me gain

Published: 7:29PM Wednesday August 20, 2014 Source: BusinessDesk

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Fletcher Building site – Source: ONE News

New Zealand shares rose as Fletcher Building and Trade Me Group beat full-year profit guidance.

Energy companies fell on weaker political polls ahead of next month’s election.

The NZX 50 Index rose 26.126 points, or 0.5%, to 5140.338. Within the benchmark, 32 stocks rose, 16 fell and two were unchanged. Turnover was $167 million.

Fletcher Building rose 0.9% to $9.17, with more than $47 million worth of shares in New Zealand’s largest listed company changing hands. The construction and building supplies company beat market expectations posting a 4% gain in annual profit to $339 million.

Trade Me rose 2.6% to $3.61 after the online auction website said annual profit rose 1.9% to $80.1 million.

“The results all came slightly ahead of the expectations for the day, which was a nice surprise,” said James Lindsay, who helps manage $400 million in equities for Tyndall Asset Management.

“It has certainly been a volatile period, New Zealand has gone through a couple of months of sell off and so with slight relief from few of these results allowing the market to bounce a little bit.”

Today marks one month until New Zealand’s general election, and although polls largely show the incumbent National-led government returning for a third term led by Prime Minister John Key, recent polls have shown a drop in voter support for the party, while ongoing political scandal surrounding alleged ‘dirty tricks’ may weigh on voters’ minds.

The opposition parties, Greens and Labour, have promised if elected to further regulate the energy sector, including setting up a state-owned single electricity buyer, in a bid to push down prices.

MightyRiverPower, the state-controlled energy company floated by the government last year, slipped 0.2% to $2.37, despite posting earnings before interest, tax, depreciation, amortisation and changes in the value of financial instruments were 1% ahead of its April 2013 prospectus forecast at $504 million in the year to June 30.

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NZ stocks rise, Fletcher, Trade Me gain – Business News | TVNZ

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