Which 4 NZX diversified stocks can be considered for this year?

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Which 4 NZX diversified stocks can be considered for this year?

diversified stocks
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Highlights

  • Investing in diversified stocks helps in reducing volatility associated with a particular industry.
  • Michael Hill International posts its trading update, as it boasts solid sales across all its markets and channels.
  • Kiwi Property Group signs a sales agreement with IKEA; a store soon to come up at its Sylvia Park.

The diversification of one’s investment portfolio is crucial as it keeps one’s investment from being heavily dependent on just one sector or a company.

It not only safeguards against losses but also helps in accomplishing long-range financial goals through mitigating risks.

Having said that, let us quickly go through the four diversified stocks from the NZX worth looking at.

NZ diversified stocks- MHJ, KPG, SAN, FCG

Source: © 2022 Kalkine Media® data source- Refinitiv

Michael Hill International Limited (NZX:MHJ; ASX:MHJ)

NZ’s famous fine jewellery retailer Michael Hill International Limited had recently provided its business update, wherein it expected its FY22H1 Group EBIT to be NZ$53 million.

Do Read: Michael Hill (NZX:MHJ): What is its latest business update all about?

Also, despite significant store closures due to the COVID-19 Delta variant across many regions of Australia and New Zealand in October and November, MHJ has posted solid sales growth across all markets, including the digital market for FY22Q2.

Moreover, the Company boasts robust cost controls and prudent capital management and has maintained a healthy cash position at the quarter-end.

On 25 January, at the end of the trading session, Michael Hill International traded flat at NZ$1.420.

Kiwi Property Group Limited (NZX:KPG)

Kiwi Property Group Limited has announced a 9.6% growth in the sale of its mixed-use shopping centres in December 2021 when compared to pcp.

Its top-performing asset was Sylvia Park, which recorded a sales growth of 11.7% during the period and its other key shopping centres with robust sales performances include LynnMall and Te Awa The Base.

Also Read: Which are 5 NZX REIT stocks to look at this year?

On 25 January, at the end of the trading session, Kiwi Property Group declined by 0.44% at NZ$1.120.

Sanford Limited (NZX:SAN)

One of the popular fishing stocks listed on the NZX is Sanford Limited. Recently, the Company had made certain changes in its executive team by making two new interim appointments.

Interesting Read: Sanford & King Salmon: How are NZX fishing stocks faring

Peter Young and Colin Williams have been appointed for interim roles of Acting Chief Operations Officer and the GM of Fishing, respectively.

On 25 January, at the end of the trading session, Sanford slumped by 0.66% at NZ$4.540.

Fonterra Co-operative Group Limited (NZX:FCG)

New Zealand’s renowned dairy company is Fonterra Co-operative Group Limited. It has lifted its Farmgate Milk Price forecasted range to NZ$8.90-NZ$9.50 per kgMS, underpinned by the sustained demand for dairy products even during the time of constrained milk supply worldwide.

Hence, FCG has maintained its current earnings guidance of 25-35 cps for the 2021/22 season.

Must Read: Which are 4 NZX consumer stocks to be explored this year?

On 25 January, at the end of the trading session, Fonterra Co-operative Group climbed by 1.03% at NZ$2.930.

Bottom Line

The diversification of stocks is a smart approach as it not only reduces an investor’s exposure to the risks and volatility associated with a particular industry but at the same time, it helps in accentuating gains derived from investing in varied sectors or companies.

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