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

 


MARKET CLOSE: NZ shares gain, led by Fletcher

MARKET CLOSE: NZ shares gain, led by Fletcher on expected earnings growth

By Paul McBeth

Nov. 20 (BusinessDesk) - New Zealand shares gained, led by Fletcher Building after the biggest listed company forecast earnings growth of up to 22 percent, lifting the NZX 50 Index higher. NZ Oil & Gas was the biggest decliner.

The NZX 50 Index rose 30.37 points, or 0.8 percent, to 3972.97. Within the index, 29 stocks gained, 10 fell and 11 were unchanged. Turnover was a bigger-than-normal $177.5 million, with Fletcher shares accounting for $87.9 million today.

Fletcher Building led gainers, rising 3.7 percent to a 13-month high $7.65 after the construction firm flagged operating earnings will be between $560 million and $610 million in the 2013 financial year, up by between 12 percent and 22 percent from a year earlier. The strength of New Zealand's residential market in Christchurch and Auckland is driving that growth.

"They're very focused on improving the productivity of the business and that's something we expect to occur with other companies," said Shane Solly, head of equities at Mint Asset Management. "These are things people want to hear."

Rural services firm PGG Wrightson gained 3.1 percent to 33 cents, while gold miner OceanaGold gained 2.6 percent to $4.18. Tech companies Diligent Board Member Services and Xero rose 2.3 percent to $4.48 and 1.8 percent to $6.10 respectively.

Children's clothing chain Pumpkin Patch was unchanged at $1.25 after chief executive Neil Cowie told shareholders Christmas trading is likely to be tough, with retailers continuing to discount their wares.

Other retailers fell in trading today, with outdoor equipment chain Kathmandu down 1.1 percent to $1.85, Warehouse falling 0.9 percent to $3.17 and Michael Hill International declining 0.8 percent to $1.23.

Fisher & Paykel Healthcare, which derives more than half its revenue in US dollars, fell 0.8 percent to $2.43 after the New Zealand currency rallied half a US cent.

NZ Oil & Gas was the biggest decliner on the NZX 50, falling 1.1 percent to 86.5 cents.

A2 Corp, which markets milk products, fell 1.5 percent to 64 cents after the company told shareholders it's in talks with the stock exchange to shift its listing to the main board from the alternative market.

"With a $400 million market cap it's a reasonably substantial entity in its own right, so it's time to migrate on to the main board," Solly said.

NZAX-listed fast food chain Burger Fuel Worldwide sank 8.9 percent to $1.12 after reporting a 37 percent lift in first-half profit on the strength of its growing Middle East sales. The company still has no plans to pay dividends, instead preferring to focus on growing its international business.

Stock exchange operator NZX was unchanged at $1.24 after research firm Morningstar recommended investors steer clear of the $525 million Fonterra Shareholders' Fund float, and wait until the units trade before buying them.

The research firm gives a ‘do not subscribe’ recommendation for the fund’s initial public offering, saying Fonterra Cooperative Group lacks pricing power over its dairy commodities, generates low returns compared to its multinational peers, and investors won’t know the price they are paying until after the bookbuild process is completed on Nov. 27.

Shares in miner Glass Earth surged 22 percent to 33 cents after the NZAX-listed firm gained rights to take over the Neavesville gold and silver prospect currently controlled by Canadian resource developer Eurasian Minerals.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news