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

 


MARKET CLOSE: NZ shares fall; Westpac, Fletcher slip

MARKET CLOSE: NZ shares fall; Westpac, Fletcher slip, Moa gains on debut

Nov. 13 (BusinessDesk) - New Zealand shares fell, joining a global selloff on concerns about the US fiscal cliff and Europe’s stuttering economy. Fletcher Building and Telecom paced the decline; Westpac Banking Corp shed its dividend while boutique brewer Moa advanced in its listing debut.

The NZX 50 Index fell 13.441 points, or 0.3 percent, to 3970.55. Within the index, 23 stocks fell, 15 rose and 12 were unchanged. Turnover was $85.8 million.

Share markets were weaker across the region, with Japan’s Nikkei 225 Index down 0.3 percent in early trading and Hong Kong’s Hang Seng falling about 1 percent. New Zealand stocks are retreating from their highest levels in almost five years, where they’ve been underpinned by high dividend yields.

“Certain parts of the market looking a bit stretched,” said Greg Easton, an adviser at Craigs Investment Partners. “The property sector, the retail sector are running above where we think the value is. But really they’re being driven by yield.”

European concerns and America’s fiscal cliff have prompted some people “to take money off the market,” he said.

Fletcher Building, the biggest construction and building products group on the NZX 50, fell 0.9 percent to $7.41. Telecom declined 1.6 percent to $2.395.

Westpac dropped 4.8 percent to $31.79 after shedding its 84 cents a share final dividend.

Moa ended the day at $1.29, having sold in a $16 million initial public offering at $1.25. Moa needs the money to build a new $6.1 million brewing facility and cover the $1.6 million cost of the float.

Kathmandu, the outdoor equipment retailer, rose 4.8 percent to $1.75, having shed about a third of its value in the past year. Xero, the cloud-based accounting service, climbed about 1 percent to a new record close $6.36 as it continued to benefit from the extra exposure from listing on the ASX last week.

Trade Me Group, the auction website, gained 1.2 percent to $4.19.

Mainfreight, the global transport and logistics company, pared an earlier decline to finish the day unchanged at $10.40. First-half profit fell 4.6 percent as an earnings slump in Europe offset gains in all of its other markets.

“We maintain our confidence in the long-term benefits of our European acquisition although we are disappointed with the financial performance over the last six months,” managing director Don Braid said in a statement.

Infratil rose 0.2 percent to $2.18. The investment firm reported a first-half net loss of $16.5 million after taking a previously flagged charge against the value of its UK airports. It lifted its dividend by 8.3 percent.

Goodman Property Trust was unchanged at $1.06 after saying it wants to raise $80 million in new equity from institutional and retail shareholders to buy the 50 percent it doesn’t already own of the Auckland business park, Highbrook, in a $186.6 million transaction involving cash, trust units and deferred payment elements.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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