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

 


NZ shares mixed as heavyweight stocks fall, retailers gain

NZ shares mixed as heavyweight stocks fall, retailers gain

By Paul McBeth

Oct. 9 (BusinessDesk) - New Zealand shares were mixed in trading today as declining heavyweight stocks, including Fletcher Building and Contact Energy, were offset by gains in retail stocks offering investors better returns than term deposits.

The NZX 50 index fell 15.92 points, or 0.4 percent, to 3907.99. Within the index, 24 stocks gained, 13 fell and 13 were unchanged. Turnover was $115.3 million.

Contact Energy was the biggest decliner, reversing the previous day's gains and falling 3.7 percent to $5.27 from a 10-month high, while Fletcher decreased 2.4 percent to $7.30, down from a 12-month high. Telecom fell 0.6 percent to $2.36.

"They've had a pretty reasonable run, and you have to wonder whether it's just a bit of a pullback following recent strong performance," said Craig Brown, senior investment analyst at OnePath NZ. "We didn't get a strong lead from offshore markets overnight and Asia's mixed, so the market's probably lacking direction."

Retailers gained, with the NZX Consumer index up 0.7 percent to a four-and-a-half-year high 1792.14, led by fast-food operator Restaurant Brands, which climbed 2.2 percent to $2.38.

Warehouse rose 1 percent to $3.12, children's clothing chain Pumpkin Patch advanced 0.8 percent to $1.20, Hallenstein Glasson increased 0.8 percent to $4.99, and outdoor equipment chain Kathmandu gained 0.6 percent to $1.83.

Brown said some retail stocks offer reasonable income streams to shareholders, and that may have lifted appetite for the better-performing companies. Warehouse has a gross dividend yield of 9.25 percent, Restaurant Brands has 9.81 percent and Hallenstein Glasson 9.09 percent, according to NZX data.

"It's been a tough time for retailers which had been sold off - some quite aggressively," Brown said.

Government figures today showed a slowdown in spending on electronic cards last month, particularly in consumable goods such as food and liquor.

Separately, the New Zealand Institute of Economic Research's quarterly survey of business opinion showed more improvements in the sector, especially in Auckland.

Shares in industrial rubber goods maker Skellerup fell 1.1 percent to $1.75 a day before the stock sheds its dividend right. The stock rose to a record-high $1.77 yesterday, and is rated an average 'outperform' based on three analyst recommendations compiled by Reuters with a median target price of $1.69.

Xero, the cloud-based accounting software firm, rose 0.6 percent to $5.38 after the Wellington-based published its prospectus for a secondary listing on the ASX. Governance software maker Diligent Board Member Services climbed 1.8 percent to $3.92.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news