MARKET CLOSE: NZ shares fall as markets await Greek progress, payrolls; Warehouse falls

Feb. 3 (BusinessDesk) – New Zealand shares fell after Warehouse Group lowered its guidance and led a decline among retailers on the NZX 50 Index. Investors are awaiting progress over the weekend on Greece’s debt talks, and US payrolls, which are expected to show ‘green shoots’ in the US economy.

The NZX 50 Index fell 2.4 points, or 0.1 percent, to 3312.22. Within the index, 23 stocks fell, 19 gained and eight were unchanged. Turnover was $85 million. The index has slipped from a three-month high and has edged up about 0.8 percent this year.

Shares were generally weaker across Asia ahead of the payrolls data and into a weekend where there is some optimism for progress with Greece.

“US data has continued to surprise to the upside for the past two months,” said Angus Gluskie, head of White Funds Management in Sydney. “Anything apart from a big disaster will be read reasonably well.”

Global manufacturing data this week had lifted sentiment though heading into the weekend investors were focussed more on Europe and signs of resolution in Greece’s talks with its private sector creditors, he said.

The US payrolls data may show the world’s biggest economy stacked on 140,000 jobs last month, according to a Bloomberg survey. That would add to December’s 200,000.

Warehouse fell 3.3 percent to $2.95. The retailer expects adjusted net profit of between $62 million and $66 million in the year ending July 27, down from a previous forecast of $70 million, it said in a statement today. Net profit will likely be about $80 million, in line with previous guidance.

“Margin pressures experienced in recent months” was to blame for the downgrade, the retailer said.

Hallenstein Glasson Holdings, the clothing chain, fell 2.5 percent to $$3.56 and children’s clothing chain Pumpkin Patch dropped 1.3 percent to 78 cents.

Briscoe Group, the home ware and Rebel Sport retailer, fell 3.3 percent to $1.45. The retailer gained yesterday after releasing more upbeat earnings numbers.

Shares in Kermadec Property Fund were unchanged at 64 cents after the property investor said it’s entered into a formal sale and purchase agreement with manager Augusta Funds Management. The deal, which is contingent on shareholder approval, will bring management in-house and give the company a new funds management unit. It will also change its name to Augusta Group.

Units in Argosy Property Trust rose 0.6 percent to 83 cents after the commercial property investor yesterday said it will push on with plans to corporatise its structure in a bid to cut costs and improve corporate governance. The property investor bought out the OnePath NZ-owned manager for $20 million last year.

NZX gained 0.8 percent to $2.70 after the stock exchange operator said trading in shares and debt securities jumped in January, underpinning a stronger start to 2012. The stock exchange is poised for new listings this year, with the government’s partial privatisation programme flagged to begin in the third quarter of the year.

(BusinessDesk)

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