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

 


MARKET CLOSE: NZ shares mixed; Chorus falls, Xero soars

MARKET CLOSE: NZ shares mixed; Chorus falls on regulatory threat, Xero soars

Dec. 3 (BusinessDesk) - New Zealand shares fell after telecommunications network operator Chorus said a draft view of price curbs proposed by the regulator could wipe $160 million from earnings. Xero soared to a record after raising funds from US investors.

The NZX 50 Index fell 0.99 points, or 0.02 percent, to 4049.09. Within the index, 20 stocks rose, 15 fell and 15 were unchanged. Turnover of $143 million was dominated by Telecom, Chorus and Fletcher Building.

Chorus, which was spun off from Telecom last year, tumbled 14 percent to $2.91 after the Commerce Commission released draft plans to steeply cut what the telecommunications network operator can charge for access to electronic switchgear on its ageing copper lines. Communications Minister Amy Adams is reviewing the recommendation, suggesting it could yet be pared back.

“As it sits it’s certainly pretty bad for Chorus, with implications for dividends and debt,” said David Price, a broker at Forsyth Barr. Still, the minister’s quick response implies “we will get some sort of change.”

Adams asked her officials to review the effects of the pricing and said it’s important to find a methodology appropriate to New Zealand.

Telecom rose 0.4 percent to $2.32. The stock is rated ‘underperform’ based on the consensus of 11 recommendations compiled by Reuters, with a price target of $2.23.

Xero, the cloud-based accounting service, rose about 12 percent to a record close of $7.70, giving the company a market value of $902 million before it has even made a profit. The company raised $82 million selling shares to two US funds, including the Peter Thiel-backed Valar Ventures at $6 apiece.

Price said the capital raising gives Xero enough cash for three years at its current burn rate and the confidence shown by the US investors “is an endorsement of the stock.”

PGG Wrightson rose 2.8 percent to 37 cents after the nation’s largest rural services company said it has finally received repayment of loans over the Crafar Farms of about $25 million following the sale of the properties to China’s Shanghai Pengxin Group.

The Crafar Farms went into receivership in 2009.

Warehouse Group, the biggest retailer on the exchange, gained 2.6 percent to $3.13 and Fisher & Paykel Healthcare gained about 2 percent to $2.61.

Glass Earth Gold tumbled 13 percent to 21 cents. The company is raising as much as C$3 million in a private placement in Canada to develop its Neavesville and WKP projects in the Hauraki region, it said today.

Fletcher Building, the biggest company on the exchange, rose 0.8 percent to $7.98. Contact Energy, the biggest power company on the NZX 50, gained 1.3 percent to $5.39.

Tourism Holdings, the campervan company, gained 1.4 percent to 74 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Employment: ANZ Proposes Casualisation In Whangarei Stores

ANZ workers in Whangarei could see their incomes drop by 20 to 40 percent if the bank’s proposal to reduce the number of full-time positions goes ahead says FIRST Union national organiser Tali Williams. More>>

Finance: BNZ Develops Specialist Tāmaki Māori Banking Team

BNZ develops specialist Tāmaki Māori Banking Team to support Māori as Auckland grows More>>

Pharmaceuticals: Commerce Commission To Consider Pharmaceuticals Merger

The Commerce Commission has received an application from Pfizer Inc. seeking clearance to acquire all of the shares in Hospira Inc. More>>

Real Estate: Housing Unaffordability Issues Spread

Surging house prices in Auckland and Queenstown last month pushed home ownership even further beyond the reach of first home buyers in the two districts, according to the AMP360 Home Loan Affordability Report for March. More>>

Statistics NZ: Annual Exports To China Dip Below Australia

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said today. More>>

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news