News Round Up

Mortgage brokers plan publicity campaign, Market reaction to election, NZX index changes, Propertyfinance Securities to raise funds.

Monday, September 19th 2005, 6:46AM

The New Zealand Mortgage Brokers Association is planning to start an advertising campaign about the benefits of using a broker.

The campaign, which includes television commercials, is being funded by a levy on its members.

The campaign is being launched in conjunction with a new brand and logo. The NZMBA wants to increase its market share from around 30% of all mortgages written to 40%.

Market reaction to election result likely to be muted
Financial markets are expected to react calmly to Saturday's indecisive election result that gave Labour one seat more than National's 49 seats. [MORE]

NZX index changes
Several sharemarket indices are due to change at the start of October. Westpac Banking Corporation will become part of the NZX 50 Index and will replace Restaurant Brands. Westpac has qualified after the Australian company issued shares to a large number of New Zealand shareholders, in exchange for shares in Westpac's delisted New Zealand entity Westpac Investments. Based on current prices, Westpac will rank around 12th of the issuers in the NZX 50 Index, and will have a weighting of around 1.8%.

Restaurant Brands will instead be added to the NZX SmallCap Index.

At the big end of town Vector comes into the NZX 15 taking the place of Nuplex.

Propertyfinance Securities to raise money
Propertyfinance Securities, the main subsidiary of listed finance sector company Avon Investments, is proposing to issue securities up to $20 million of prime first commercial mortgages.

The prime first securitisation programme follows a similar programme for HeadStart loans to residential owner-occupiers announced in April.

Up to $20 million of loans will be sold initially to a special-purpose entity established with the NZ Guardian Trust Co Ltd, which will issue notes to financial institutions, maturing in 2039 and priced at a fixed margin over 90-day bank bills. Up to $40 million of notes will be issued.

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