Jan. 9 (BusinessDesk) –New Zealand shares rose, nudging the NZX 50 to a five-year high. OceanaGold, Kathmandu and Telecom led gainers.
The NZX 50 Index rose 13.17 points, or 0.3 percent, to 4103.54. Within the index, 24 stocks rose, 18 fell and eight were unchanged. Turnover was $130.8 million.
The local benchmark has been rising ahead of earnings in February. Some companies have given favourable mid-quarter updates that have lifted expectations earnings won’t disappoint and dividend yields on shares like Telecom make them attractive versus fixed income securities.
OceanaGold, which operates the Macraes gold field, rose 6.2 percent to $3.43. Kathmandu, the children’s clothing chain, gained 3.4 percent to $2.11.
Telecom, which has a dividend yield of 13.3 percent, rose 3.1 percent to $2.31. Sky City Entertainment, the casino and hotel company, rose 1.1 percent to $3.81. It has a dividend yield of 5.8 percent.
PGG Wrightson, the nation’s biggest rural services company, rose 2.2 percent to 47 cents.
Decliners were led by Skellerup, down 2.4 percent to $1.63. Contact Energy, the biggest power utility on the NZX 50, fell 2.3 percent to $5.17.
Fletcher Building, the biggest company on the NZX 50, was unchanged at $8.45 with 2.8 million shares changing hands.
Guinness Peat Group, which is winding down its investment portfolio, rose 0.9 percent to 59.5 cents.