MARKET CLOSE: NZ shares decline; PPL down, NZX up

MARKET CLOSE: NZ shares join Asia sell-off; PPL falls, NZX gains

Oct. 26 (BusinessDesk) – New Zealand shares ended the day lower, joining a sell-off across Asian equity markets as investors fretted about the impact of a week greenback on export earnings. Pumpkin Patch fell and NZX Ltd. gained.

The NZX 50 Index fell 4.304, or 0.1%, to 3285.442. Within the index, 23 stocks rose, 12 fell and 15 were unchanged. Turnover was a higher-than-average $129.3 million, reflected turnover in Telecom, Fisher & Paykel Healthcare and Fletcher Building.

Japan’s Nikkei 225 Index was lower during much of New Zealand’s trading day, before picking up. Australia’s S&P/ASX 2000 Index fell 0.5%.

Pumpkin Patch, the children’s clothing chain, shed 2% to $1.96, while New Zealand Refining, the nation’s only oil refinery, declined 2.7% to $3.60.

“Asian markets were a bit weaker today and we’ve tracked slightly lower,” said Grant Williamson, director at Christchurch-based brokerage Hamilton Hindin Greene.

NZX rose 2.6% to $1.59 a day after Australian rival ASX soared 19% on the back of a takeover offer at a steep premium from the Singapore stock exchange. ASX gave up some of its gains, slipping 6% today.

“ASX has been valued on very high multiples and that’s rubbed off for some investors in NZX,” Williamson said. Still, the Singapore offer has to navigate the approvals process across the Tasman, where ASX may be deemed an asset of national importance. “There’s a lot of water to go under the bridge.”

Kathmandu Holdings, the dual-listed outdoor equipment retailer, rose 3.3% to $1.90, leading gainers on the NZX as the kiwi dollar weakened against its Australian counterpart, creating an arbitrage opportunity between its shares on the ASX and NZX.

The New Zealand dollar sank to 75.87 Australian cents, and earlier touched 75.56 cents, nearing a 10-year low.

New Zealand Oil & Gas Ltd. gained 1.6% to $1.28 as problems at the Pateke-3H well were solved over the long weekend. The oil and gas explorer has a 12.5% share in the Tui fields with AWE Ltd., Mitsui E&P Australia Pty., and Pan-Pacific Petroleum Ltd.

Shares in coal seam gas explorer L&M Energy Ltd. rose 7.1% to 13.5 cents after the company boosted its gas reserves at its western Southland basin permit.

Port of Tauranga Ltd., which operates the Bay of Plenty port, was unchanged at $7.25 after the company’s chief executive Mark Cairns gave shareholders an upbeat earnings assessment. The port expects to meet analysts’ forecasts with earnings of between $51 million and $53 million.

(BusinessDesk)

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