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

 

Budget Building Battle: Bill English Blames Council On Housing

The Nation: Finance Minister blames Auckland Council for housing shortage, saying it is responsible for land, housing and infrastructure supply in the city, while government provides rental subsidies... More>>

ALSO:

Megiaglommeration: NZME And Fairfax Apply For Authorisation To Merge

The Commerce Commission has received an application from Wilson and Horton Limited (trading as NZME) and Fairfax NZ Limited seeking authorisation to merge their media operations in New Zealand. More>>

ALSO:

Brewing: Lion To Buy Cult Upper Hutt Brewer Panhead

Lion - Beer, Spirits and Wine (NZ), New Zealand's biggest beer maker, has agreed to buy Panhead Custom Ales from the family of founder Mike Neilson, its second such purchase of a popular craft brewer after the acquisition of Dunedin-based Emerson's Brewing Co in 2012. More>>

ALSO:

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news