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

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news