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 Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news