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

 


MARKET CLOSE: NZ shares mixed; Ryman, Diligent up, Xero down

MARKET CLOSE: NZ shares mixed; Ryman, Diligent gain after results, Xero falls

Nov. 15 (BusinessDesk) - New Zealand shares were mixed along with the results of companies with a Sept. 30 balance date. Ryman Healthcare and Diligent Board Member Services rose as investors cheered their results, while Xero and Rakon fell after posting losses.

The NZX 50 Index fell 4.05 points, or 0.1 percent, to 3951.50. Within the index, 25 stocks fell, 15 rose and 10 were unchanged. Turnover was $85 million.

Diligent rose 2.8 percent to a record close of $4.07 after yesterday reporting a 145 percent gain in third quarter revenue and wider earnings margins on its software for managing corporate governance information flows, known as Diligent Boardbooks.

Ryman, the biggest retirement village operator on the NZX, gained 1.2 percent to $4.13, edging back toward the record level reached in September. Today it posted a 15 percent gain in first-half profit and bumped up its dividend as fee income grew. Profit rose to a record $68.8 million while revenue rose 19 percent to $87.9 million.

Ryman’s results “were rock solid,” said Matthew Goodson, a portfolio manager at BT Funds Management. The value of its villages and units is benefiting from a correlation to stronger house prices, he added.

Fletcher Building, the biggest company on the exchange by market capitalisation, rose 1.2 percent to $7.43. Telecom, the biggest phone company on the NZX 50, climbed 0.2 percent to $2.38.

Contact Energy declined 1.5 percent to $5.19 amid concerns about the impact of low wholesale electricity prices.

Goodson said funds will be flowing back into the market following Haier’s takeover of F&P Appliances and Guinness Peat Group’s purchase of its capital notes. New Zealand is still a high-yielding market “and it’s a world where it’s very hard to find yield.”

Guinness Peat was unchanged at 58.5 cents.

Xero, the cloud-based accounting service, fell 4.7 percent to $5.95 after saying it will continue to burn cash to build sales as its losses widen. The loss was $7 million in the six months ended Sept. 30, up from a loss of $3.7 million a year earlier. Sales soared 119 percent to $17.3 million, closely followed by a 105 percent jump in operating expenses to $22.8 million.

“With Xero you’re either a believer or not a believer. At this point it’s impossible to apply any cash-flow-based analysis,” Goodson said. “It’s clear they have built a product and had some success getting some market share. At the moment it is engaging in a winner takes all strategy.”

Rakon, which makes components for navigation systems and smart phones, fell 4.4 percent to 43 cents. The Auckland based company posted a loss of $3.96 million for the six months to Sept. 30 as revenues fell and operating expenses rose during a period of sluggish growth in major markets.

Jeweller Michael Hill International gained 1.6 percent to $1.24 while Kiwi Income Property Trust fell 1.7 percent to $1.14. Nuplex Industries declined 2.1 percent to $2.84.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news