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Offshore investors drive local shares up

NZ NewswireNZ Newswire 1/09/2016 Sophie Boot

Offshore investors looking for yield were lured to the NZX 50, with Fisher & Paykel Healthcare and Auckland International Airport leading the index higher. © Ross Setford/Bloomberg News Offshore investors looking for yield were lured to the NZX 50, with Fisher & Paykel Healthcare and Auckland International Airport leading the index higher. New Zealand shares rose as offshore investors looking for yield were lured to the local bourse. Fisher & Paykel Healthcare and Auckland International Airport led the index higher while Steel & Tube Holdings fell.

The S&P/NZX 50 Index rose 24.36 points, or 0.3 per cent, to 7,423.19. Within the index, 24 stocks fell, 22 rose and five were unchanged. Turnover was $170.7 million.

"There's flow-driven movement from offshore - the desire to hide, invest, call it what you will, in New Zealand continues unabated," Matt Goodson, managing director at Salt Funds Management said.

F&P Healthcare gained 2.1 per cent to $9.87 and Auckland International Airport rose 2 per cent to $7.65.

Property stocks rose, with Kiwi Property Group up 1.9 per cent to $1.58, Goodman Property Trust gaining 1.5 per cent to $1.37, and Stride Property advancing 1 per cent to $2.07.

"We have seen bonds sell off over the last couple of weeks, as the market has begun to move to the view that the Federal Reserve is more likely than not to tighten in September," Goodson said.

Steel & Tube was the worst performer, down 5.1 per cent to $2.22.

It's dropped 8.6 per cent this week, following media reports that law firm Adina Thorn is launching a class action against steel mesh suppliers who have supplied products which don't meet the required earthquake standards.

Steel & Tube is being investigated by the Commerce Commission over its claims that its products had been independently tested when they had not.

Metro Performance Glass fell 3.4 per cent to $2.02, Chorus dropped 2.4 per cent to $4.15, and Warehouse Group fell 2.1 per cent to $2.83.

SkyCity Entertainment Group, which gave up rights to a 10.5 cent dividend, dropped 11 cents to $4.90 while NZX, which paid a 3 cent dividend, fell 2 cents to $1.02.

Outside the main index, Turners was unchanged at $3.05.

The financial services firm extended its contract with Custom Fleet for a further three years to manage the sale of former lease vehicles of New Zealand's largest vehicle and equipment leasing company.

BusinessDesk

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