Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


MARKET CLOSE: NZ stocks fall on Egyptian unrest: FBU drops

MARKET CLOSE: NZ stocks fall on Egyptian unrest: Fletcher paces decliners, DNZ gains

By Jason Krupp

Jan. 31 (BusinessDesk) - New Zealand stocks fell as investors fled higher yielding, or riskier, assets amid fears Egypt's political turmoil will spread to other countries in the region. Fletcher Building Ltd. paced decliners on the exchange, while DNZ Property Fund Ltd. rose.

The NZX 50 Index fell 13.89 points, or 0.41%, to 3338.74. Within the index, 19 stocks fell, 18 rose, and 13 were unchanged. Turnover was $83.1 million, despite many Auckland participants being out of action due to a regional holiday.

Egypt's anti-government protests, which mirrored similar political unrest in Tunisia, are now in their sixth day. The turmoil has stoked fears that oil prices could spiral upwards if they spread to major oil-producers such as Saudi Arabia, with the benchmark Brent Crude last trading at US$97.24 from US$94.75 early last week.

Fletcher fell 2% to $7.73, after New Zealand's biggest construction company sweetened its takeover offer for Australia's Crane Group, a bid the takeover target's board has recommending to shareholders.

The Auckland-based company is now offering A$10.07 per Crane share, made up of A$3.50 cash and one of its own shares for each Crane share, as well as a special dividend payment.

The decline "is a bit of a kneejerk reaction to the news that they will have to pay out some cash and issue new shares," said Grant Williamson, a director at Hamilton Hindin Greene.

Goodman Fielder Ltd., the food ingredient manufacturer, fell 3% to $1.64. The company has been facing rising soft commodity prices, which are expected to put pressure on earnings.

Rakon Ltd., the maker of crystal oscillators used in cellphones and GPS units, fell 2.5% to $1.17. Fairfax Media reported that Vodafone have begun selling femtocells, which act as miniature cellphone towers to boost reception. It is sourcing the products from France’s Sagem, a rival producer to Rakon.

New Zealand Oil & Gas Ltd., the energy exploration and production company, fell 1.2% to 85 cents.

The company's chief executive David Salisbury told investors the stock had oversold shares in the wake of the Pike River coal mine disaster, and the market had failed to factor in the effects of recent rise in oil prices on its earnings.

NZOG, which owns 29% of Pike River and has exposures to the mine totalling $150 million, issued its first quarterly update since the explosions at Pike River in November claimed 29 miners’ lives and saw the troubled mine delisted from the NZX and placed in receivership.

"Unfortunately investors have had confidence knocked a little with what happened to Pike River and NZO's exposure to that," said Williamson. "I don't think companies should be complaining about their share price, they should concentrate on the fundamentals of running their business and let supply and demand determine price.

Pyne Gould Corp., the financial services company, was unchanged at 36 cents after George Gould announced he will be resigning as a director as part of the conditions of taking over as managing director of PGG Wrightson.

Both companies are in transition. Pyne Gould has poured its Marac Finance unit into the new Building Society Holdings merger with Southern Cross and Canterbury building societies, which is to list on the NZX tomorrow. Pyne Gould is distributing most of its 72% stake to shareholders.

Wrightson is the subject of a $141 million partial takeover offer from 19% owner Agria Corp. and New Hope Group, one of China’s largest agricultural and food corporations. Wrightson Shares were unchanged at 54 cents.

DNZ, the property investor, rose 1.7% to $1.22. The stock was the second best performing property investor on the NZX 50 last year, despite having only been included into the index in October.

AMP NZ Office Ltd., the specialist investor in prime office space, rose 1.3% to 78 cents, Goodman Property Trust, the commercial property investor, rose 1.1% to 93 cents, and Vital Healthcare Property Trust, the investor in specialist medical clinics, rose 1% to $1.06.

New Zealand Refining Co. rose 1.3% to $4.69 after it a fire at the company's Marsden Point oil refinery was put out over the weekend without having caused significant damage.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news