Based in New Zealand and looking to buy Fletcher Building shares NZ online? If so, you will need to find a suitable stock dealing platform that gives you access to the NZX.
The building materials supplier has had a rough time in 2020 as per the COV-19 pandemic. If you do wish to proceed with a purchase, this does mean that you will be able to buy the shares at a huge discount.
In this guide, we show you how to buy Fletcher Building shares online in New Zealand. We also explore the best NZ stock brokers to purchase the shares with in 2020.
In This Guide
In This Guide
In This Guide
Your first port of call will be to find an online stock broker that gives you access to the NZX. There are many platforms to choose from, so spend some time looking at fees, commissions, payments, regulation, and user-friendliness.
If you don’t have time to search for an NZX broker yourself, below we discuss some of the best trading platforms of 2020.
Plus500 is an online CFD trading platform that offers thousands of financial instruments. This includes indices, commodities, cryptocurrencies, interest rates, and forex. In the stock CFD department, you will have access to heaps of markets – including that of the New Zealand Exchange. This means that you will be able to trade Fletcher Building shares and the likes of A2 Milk shares and Fisher and Paykel shares at the click of a button.
As you will be trading CFD instruments as opposed to buying the underlying asset, this allows you to choose from a buy or sell position. In other words, you get to speculate on whether you think Fletcher Building shares NZ will increase or decrease in value. You can do this in a cost-effective manner, as Plus500 does not charge any trading commissions. This is the case with all of its tradable instruments.
What we also like about Plus500 is that you will be able to trade Fletcher Building CFDs with leverage. Put simply, this means that you can trade with more money than you have in your account. At Plus500, leverage can go as high as 1:5. In terms of the platform itself, Plus500 allows you to trade via its website or impressive mobile trading app (iOS or Android).
The CFD provider allows you to get started with just £100 (about $200 NZD). Supported payment methods include an NZ debit/credit card, bank account, or Paypal. All three payment methods are fee-free. Finally, Plus500 is regulated by ASIC and a number of other leading governing bodies, so ou can be sure it is a very safe and secure platform on which to trade share CFDs.
- Commission-free CFD provider – only pay the spread
- Thousands of financial instruments across heaps of markets
- Ability to trade stock CFDs with leverage of 1:5
- You can buy or sell a companies Share CFDs if you think its value will go up or down
- Takes just minutes to open an account and deposit funds
- Excellent mobile trading app
- CFDs only
CFD Service. Your capital is at risk.
IG is an online share dealing and CFD trading platform that is hugely popular with New Zealand residents. It lists heaps of companies listed on the NZX – including Fletcher Building. This means that you can trade Fletcher Share CFDs with leverage, as well as choose from a buy or sell position. Unlike Plus500, IG does charge a very small commission when trading Fletcher Building share CFDs.
This stands at 0.10%, albeit, you will need to meet a minimum charge of $8. This is, however, still competitive. But, the key point is that IG offers come of the tightest spreads in the space. In fact, at the time of writing, Fletcher Building shares have a buy and sell price of $3.13. As a result, you are trading at wholesale rates. This offsets the small commission that you are required to pay, meaning that you can trade Fletcher Building shares in a cost-effective environment.
At IG, you have several options when it comes to the trading platform. For those of you that are fans of the MetaTrader series, you will be pleased to know that IG offers MT4. Additionally, IG also offers its own proprietary trading platform. This still comes jam-packed with technical indicators and chart analysis tools, as well as fast execution times. You can also trade via the IG mobile application, which is great for entering buy and sell positions while on the move.
In terms of the fundamentals, IG is heavily regulated. It holds several brokerage licenses, including that of ASIC (Australia) and the FCA (UK). The platform does have a slightly higher minimum deposit requirement, which stands at £250 (about $500). You can get funds into the broker with your NZ debit/credit card or via a bank transfer. The latter will, however, take a few days to process.
- Trusted NZ broker with a long-standing reputation
- Good value share dealing services
- Leverage and short-selling also available
- Spread betting and CFD products
- Access to heaps of international stock markets
- Great research department
- Minimum deposit of £250 ($490 NZD)
- $8 minimum commission
If you’ve been following the financial markets, then you will know the stocks and shares space has been somewhat volatile in recent months. This is largely down to the wider impact of COV-19.
With this in mind, it’s crucial that you perform some research on Fletcher Building shares before making an investment. In doing so, you can be 100% certain that the shares are right for your stock portfolio.
Fletch Building is a large New Zealand company that is involved in the construction industry. This includes everything from home building, manufacturing, distribution, and material supplies. Although the firm primarily services the domestic market, Fletcher Building also has a presence in Asia, Europe, and Africa. The company is publicly-listed on the NZX, meaning that anyone can buy shares in Fletcher Building.
In terms of its share price, Fletcher Building stocks have been somewhat volatile over the past two decades. Back in 2000, you would have paid just $2.54 per stock. The shares then went on an upward trajectory over the following 7 years – peaking at just over $12 per share in mid-2007. However, the shares have since struggled to maintain their strong position on the NZX. This was further amplified by the COV-19 pandemic.
For example, at the start of 2020, you could buy Fletcher Building shares at $5.23 per stock. In the last week of March, the shares hit lows of $3.15. This represents a decline of 40%. Ordinarily, it would have been reasonable to put this sharp reduction down to the wider impact of the coronavirus lockdown. After all, much of Fletcher Building’s business model centres on the distribution of materials.
However, it is the fact the shares are yet to recover in line with the wider New Zealand stock markets. For example, as of August 2020, the shares are still priced at just $3.38. Comparing this to the firm’s 2020 lows of $3.15, this means that the shares have recovered by just 7.13%. Over the same period, the NZX 50 Index has increased by 37%. This means that Fletcher Building is performing significantly worse than the wider NZ financial markets.
Fletcher Building has historically been a popular investment with those seeking regular income, not least because it has a solid track record of paying dividends. However, it came as no surprise in March 2020 when the firm’s CEO announced that Fletcher Building would be suspending its dividend policy.
As per Ross Taylor: “It is now clear that COVID-19 and the significant escalation of government protection measures in New Zealand and Australia will have a material impact on our operations and our FY20 financial results. For this reason, the Board has decided to withdraw Fletcher Building’s FY20 EBIT guidance”.
Ultimately, the dividend suspension will remain in place until further notice. As such, your Fletcher Building investment will be focused purely on capital gains.
If the COV-19 pandemic has taught us one thing – it’s that we need to be extra diligent when choosing shares to invest in. This is especially the case with a firm like Fletcher Building, which is overly exposed to national lockdowns and cross-border restrictions. As such, we are now going to discuss some of the key points that you need to take into account before buying Fletcher Building shares.
First and foremost, it’s important to look at the recent price action of Fletcher Building shares NZ. More specifically, we need to look at how the company was performing before the COV-19 lockdown came to fruition. Between the months of August 2019 and February 2020, the shares were actually performing well.
In fact, the stocks increased from $4.32 to $5.70 – representing a huge increase of 31% in just 6 months. When you add in the dividends that Fletcher Building paid, investors were right to be bullish on the firm. However, and as we covered in the section above, things have gone southwards since the realities of COV-19 came to light.
With that being said, it is reasonable to suggest that if Fletcher Building is able to weather the storm in the short term, there is no reason that it cannot get back to pre-COV-19 levels. If you believe that this will be the case, you now stand the chance of buying the shares at a significant discount.
At the time of writing, this stands at $3.38 per share. If and when it is able to get back to February 2020 levels at $5.70, this would translate into a growth of 68%.
One of the best ways to gauge the internal sentiment of a company is to look at insider transactions. For those unaware, this refers to share purchases and sales made by those running the company in question. In the case of Fletcher Building, head of Residential and Development – Steve Evans, recently purchased $136,000 NZD worth of additional shares with his own capital.
He did this when the shares were valued at $4.54. Several other insider transactions have gone through the books in recent times, which again is positive. After all, this illustrates that those running the company believe in its long-term outlook. Otherwise, they wouldn’t have invested their own funds!
Promising Outlook for Domestic Market
Although it remains to be seen how its export division will perform over the next couple of quarters, it is notable that New Zealand has got its coronavirus response under control. As a result, Fletcher Building is able to resume the services it offers to its core domestic market. This at the very least will ensure it has sufficient levels of incoming cash flow until normal business practices resume.
Step 3: Open an Account and Deposit Funds
So now that you have performed some research on Fletcher Building, we are going to show you what you need to do to make a purchase today. To get the ball rolling, you will need to open an account with your chosen online share broker. To show you how the process works, we are going to explain the steps required with top-rated stock trading site Plus500.
Once you head over to the Plus500 homepage, elect to open an account. Then, you will be asked to enter a range of personal information.
This includes your:
- First and last name
- Home address
- Date of birth
- New Zealand tax identification number
- Contact details
Plus500 will also ask you to upload some identification documents. This is to ensure it remains compliant with its licensing bodies. All you need to do it submit a clear copy of your New Zealand passport or driver’s license, alongside a proof of address. Regarding the latter, this can be a recently issued bank account statement or utility bill.
Once you have opened an account and uploaded the above documents, you will then be asked to deposit some funds. The platform allows you to do this with a:
- Debit card
- Credit card
- Bank account transfer
Plus500 has a minimum deposit of £100, which is about $200 NZD.
Once your Plus500 account has been funded, you can then proceed to trade Fletcher Building shares. Firstly, enter ‘Fletcher Building’ into the search box at the top of the screen, and click on the result that loads up.
You will then see an order box. This allows you to enter your trade requirements.
Some of the metrics that you need to enter are as follows:
- Choose from a buy or sell order. This dictates which way you think Fletcher Building shares will go.
- Enter the amount that you wish to stake in your position.
- If you want to apply leverage to boost the size of your trade, enter your required multiple.
- Enter your limit order price, or simply opt to take the next available market price
- Set up a stop-loss and take-profit order
Then, you simply need to confirm your order.
In summary, investors are somewhat split over which way Fletcher Building shares NZ are likely to go over the next few months. On the one hand, it is concerning that the firm has had to cancel its dividend policy and withdraw its plans to initiate a buyback scheme. It is also concerning that Fletcher Building shares have not recovered at the same rate as the wider NZX 50 Index.
On the other hand, some would argue that you now have a great opportunity to purchase the shares at a major discount. The stocks only need to recover to pre-COV-19 levels to yield a 67% return – and that’s without any dividends. But, there is no guarantee that this will be the case, so don’t forget that you always have the option of shorting Fletcher Building shares if you think the company’s outlook is grim.
Either way, to start trading Fletcher Building share NZ CFDs now, click on the below link!
CFD Service. Your capital is at risk.
What is the Fletcher Building share price NZ?
As of August 3rd, 2020, Fletcher Building shares are priced at $3.38.
What stock exchange is Fletcher Building listed on?
Fletcher Building is listed on the New Zealand Exchange (NZX). With a market capitalization of just under $3 billion, it is a leading constituent of the NZX 50 Index.
Does Fletcher Building pay dividends?
Before the COV-19 pandemic, Fletcher Building had a strong history of paying dividends. However, the firm's CEO suspended the Fletcher Building shares dividend policy in March 2020. The suspension will remain in place until further notice.
Can you short Fletcher Building shares?
Yes, you can short Fletcher Building shares by using a trusted CFD provider.
Where can I buy Fletcher Building shares NZ?
You can easily buy Fletcher Building shares NZ online by using a stock broker that gives you access to the NZX.