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

 

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news