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 Cavalier

MARKET CLOSE: NZ shares fall, led by Cavalier; Kathmandu jumps

Nov. 16 (BusinessDesk) - New Zealand stocks were mixed in Friday trading as international attention turned to the Middle East, where tit-for-tat rocket attacks between Israel and Gaza are raising fears of escalating conflict and driving a return to safe haven investments. Cavalier fell after cutting its guidance.

The NZX 50 Index fell 3.66 points, or 0.1 percent, to 3947.84. Within the index, 21 stocks fell, 18 rose and 11 were unchanged. Turnover was $99.7 million.

Carpet maker Cavalier fell 11.9 percent to $1.55 after it cut its earnings guidance for the financial year to between $6 million and $10 million, instead of the previous range of $10 million to $12 million. The stock is down 35 percent on the year and leads decliners for the second time this week.

"They're good operators, but they're in very difficult circumstances at the moment," said Shane Solly at Mint Asset Management, who manages more than $50 million in assets for high net worth individuals.

Kathmandu was the star performer on the day, rising 6.9 percent to $1.85 after telling shareholders at the company's annual meeting that sales were up 19.5 percent to $66.9 million in the 15 weeks ended Nov. 11. Sales at stores open at least 12 months gained 14.3 percent, although first half earnings depend on performance at Christmas. The results indicated resilient Australian sales, despite a weakening economic picture across the Tasman in recent months.

Retailer Hallenstein, which also has Australian clothing stores, was up 2.4 percent to $5.12.

Solly said there was "nervousness going into the weekend" with markets watching developments in the Middle East, where the BBC reports that Israel has called up 30,000 reservists, fuelling speculation about a ground assault on Gaza. The Hamas-controlled Palestinian enclave launched rockets that landed on Tel Aviv after Israel killed a key Hamas leader in an air attack earlier this week.

"Asia-Pacific markets have held up quite well. Australia is down 2 percent and we're flat on the day, which is a good effort considering," he said.

The other significant gainers today were Diligent Board Services, the governance software concern, which reported further strong growth in revenue in its third quarter earlier this week. Its shares were up 4.7 per cent to $4.26.

Cloud accounting software pioneer Xero, which listed on the ASX this week, shed some of earlier gains, falling 1.7 percent to $5.85. With $30.6 million of cash on hand, Xero reported a $7 million loss in the six months ended Sept. 30, up from a loss of $3.7 million a year earlier, although sales soared 119 percent to $17.3 million, closely followed by a 105 percent jump in operating expenses to $22.8 million.

Xero expects to double operating revenue in the full year, when it will post a second-half loss bigger than the first half loss but believes its high-growth strategy is the route to ultimate profitability.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news