Share prices in New Zealand’s forestry companies are on the up despite challenging times for the sector.
Two of the country’s biggest timber firms, Carter Holt Harvey and Fletcher Challenge Forests, saw their stock value rise by 14% and 17% respectively in the past six months.
The six-year high in the NZ dollar is squeezing export business but share prices are increasing because of the companies’ decision to sell off assets and pay dividends.
Fletcher Forests is selling all its forests as it seeks to become a smaller wood processing and marketing company. It is returning NZ$1.20 a share to shareholders.
The decision by Carter Holt to sell its tissue business for more than NZ$670m has boosted its share value.
