MARKET CLOSE: NZ shares fall as Xero retreats from record
MARKET CLOSE: NZ shares fall as Xero retreats from record, Sanford drops
July 24 (BusinessDesk) - New Zealand shares fell as cloud-based accounting firm Xero extended its drop from a record and fishing company Sanford declined on reports the US wants to make orange roughy an endangered species.
The NZX 50 Index fell 4.65 points, or 0.1 percent, to 3460.70. Within the index, 22 stocks fell, 17 rose and 11 were unchanged. Turnover was $79.6 million.
Xero fell 5.5 percent to $5.20, extending its decline from the record $5.80 it reached in intraday trading a week ago. The shares have soared 99 percent this year. The Wellington-based company holds its annual shareholders’ meeting on Thursday.
"They will really just talk about the broader strategy because growth in not a problem," said Greg Easton, investment advisor at Craigs Investment Partners. "There are a lot of people sitting on huge profits then there is a lot who are getting in who are really excited," referring to investors in the stock.
Freightways, the logistics and data management company, fell 1.8 percent to $3.81. The company is scheduled to release its full-year results on Aug. 13.
Globally, corporate earnings are being closely watched, with US companies already part-way through earnings season and with heavyweights including Apple about to report.
"It's a day-to-day theme," Easton said. "Tomorrow morning there is a result by Apple which people are looking to. Europe aside we are waiting for one of the biggest companies in the world to report."
Telecom, the largest company on the exchange, fell 0.6 percent to $2.525. The stock is up 23 percent this year and is rated ‘hold’ based on a Reuters poll of analysts, with a price target of $2.33.
Trade Me, the online auction site that was spun off from Fairfax Media in December, fell 1.7 percent to $3.55. The stock has gained 22 percent this year.
Sanford fell 2 percent to $3.90. The US government told Radio New Zealand this week it may recommend orange roughy be listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). New Zealand government agencies say the export fish species isn’t endangered.
Goodman Fielder, the food ingredients manufacturer whose brands include Edmonds baking products and Vogel’s bread, rose 3.3 percent to 63 cents, regaining some of the ground shed yesterday when it said full-year earnings will be at the lower end of guidance.
Diligent Board Member Services extended its advance, rising 1.3 percent to $4.02. The stock which joined the NZX 50 in June has gained 106 percent so far this year.
"The management team has been working hard on getting the story out to brokers - they are keen to have a real presence," Easton said.