The financial markets were underwhelmed by the Government's
Budget, although a $3 billion cut in its borrowing
requirement over next two years came as some surprise to
many.
Shares in Mighty River Power closed their first day of
trading on the NZX at $2.62 - a 12-cent (4.8 per cent)
premium to their issue price but down from their opening
price of $2.73.
Units in the Fonterra Shareholders Fund hit a record high
this week, despite ongoing increases in dairy product prices,
prompting some in the industry to question whether investors
fully understand the factors at work.
Rain has fallen in most of the nation's dairying areas over
the last week or so, but Fonterra chairman John Wilson said
it will take six weeks to determine whether the drought that
has hit most of the country has caused any lasting damage.
Contact Energy's share price dropped by 3.5 per cent this
morning, partly in response to uncertainty over the future of
the Tiwai Point aluminium smelter but also to an
end-of-quarter price spike last week.
Rio Tinto - the ultimate owner of the Tiwai Point aluminium
smelter - is no stranger to playing hardball with governments
when it comes to securing energy contracts.
Worsening New Zealand drought conditions helped drive
international dairy product prices up by 10.4 per cent at the
latest global dairy trade auction, putting upward pressure on
Fonterra's dairy payout forecasts for 2013/14 and beyond.
APN News and Media's share price fell by 4c (11.1 per cent)
to 32c on light volume when New Zealand share trading resumed
today after the resignation of the chief executive and
several directors late yesterday.
