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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news