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

 


MARKET CLOSE: NZ shares fall, led by CAV, Goodman Property

MARKET CLOSE: NZ shares fall, led by Cavalier, Goodman Property; Diligent climbs

Nov. 14 (BusinessDesk) - New Zealand shares fell, led by carpet-maker Cavalier, Kathmandu and Goodman Property Trust after retail sales data underlined the weak state of the economy in the third quarter. Diligent Board Member Services led gainers after posting quarterly results.

The NZX 50 Index fell 14.99 points, or 0.4 percent, to 3955.56. Within the index, 29 stocks fell, 13 rose and eight were unchanged. Turnover was $107 million.

Government figures showed the volume of retail sales fell 0.4 percent, seasonally adjusted, in the three months ended Sept. 30, against a Reuters survey calling for a 0.5 percent gain. That adds to the gloom from data last week showing the jobless rate unexpectedly jumped to 7.3 percent, suggesting the economy’s pace is stumbling

"There's been a lot of soft market indicators in the last couple of months, and they built to a bit of a crescendo with those unemployment numbers," said Andrew Bascand, managing director at Harbour Asset Management.

Cavalier dropped 3.3 percent to $1.74 and Kathmandu, the outdoor equipment chain, fell 2.9 percent to $1.70.

Goodman Property dropped 2.8 percent to $1.03 after completing a placement of $60 million of new units as part of an $80 million equity-raising to help fund the $186.6 million buy-out of an Auckland business park, Highbrook.

Bascand said the impact of the placement had been muted because the key influence on New Zealand equities remained the fact there is "still a lot of money out there looking for a home."

Kiwi Income Property Trust fell 1.3 percent to $1.16 after reporting a 16 percent decline in pretax operating earnings in the first half as rental income fell, interest costs rose and it paid a performance fee to its manager.

Diligent gained 5 percent to $3.96 on news of a 145 percent increase in quarterly revenue to Sept. 30, and a solid increase in margins as the company's corporate governance product begins to gain scale in key markets.

Among other retailers, jeweler Michael Hill International rose 0.8 percent to $1.22 and clothing chain Hallenstein Glasson Holdings rose 0.8 percent to $5.

Bascand said the retail sales data didn’t dent retail stocks as much as feared because the biggest impact was on supermarket sales, which is unrepresented on the New Zealand sharemarket.

As much as US$1 billion a week in new funds was being channelled weekly to market-tracking funds globally. New Zealand and Australia represented attractive opportunities for global investors, some of whom were only now learning about factors such as the local real interest rate environment and the underpinning effect of the Christchurch rebuild on the New Zealand economy, said Bascand.

Fletcher Building, the biggest listed construction company, fell 0.9 percent to $7.34. Nuplex Industries fell 1.4 percent to $2.90.

Xero, the cloud-based accounting service, fell 1.9 percent to $6.24. Chief executive Rod Drury said the company would press on with spending to lift sales though this strategy “will increase losses in the immediate future.” Sales rose 119 percent to $17.3 million in the first half while the ebitda loss widened to $5.5 million from $3.2 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news