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

 

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

"Don’t Give Up":
End Of Kick-Start Hits KiwiSaver Enrolments

ANZ said new enrolments for the ANZ KiwiSaver Scheme had dropped by more than 50% since the Government announced an immediate end to the $1,000 KiwiSaver kick-start incentive in the Budget last month. More>>

ALSO:

Serious Fraud Office: Alex Swney Receives Jail Sentence

Former Chief Executive of Heart of the City Alex Swney has been sentenced to five years and seven months’ imprisonment for charges brought respectively by the Serious Fraud Office (SFO) and the Inland Revenue. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news