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

 


MARKET CLOSE: NZ shares fall for third day; OceanaGold drops

MARKET CLOSE: NZ shares fall for third day; OceanaGold tumbles, Chorus halts slide

Dec. 5 (BusinessDesk) – New Zealand shares fell, led by OceanaGold, after the gold miner sold shares at a discount to repay debt. Chorus halted its two-day, 18.5 percent slump driven by the threat of regulated prices.

The NZX 50 Index fell 8.44 points, or 0.2 percent, to a two-week low close of 4007.24. Within the index, 19 stocks rose, 18 fell and 13 were unchanged. Turnover was $130 million.

OceanaGold, whose interest range from the Macraes gold field in central Otago to its Didipio project in the Philippines, fell 12.2 percent to $3.60 and its ASX-listed shares dropped 14 percent to $2.825. The company raised C$93.3 million selling 30 million shares for C$3.11 apiece or A$3 per ASX-listed CHESS Depository Interest. The CDIs were at A$3.27 yesterday.

The sale “was at a discount” and that’s weighed on the stock today, said James Smalley, a client adviser at Hamilton Hindin Greene. Some existing investors may have paid for the new entitlement by selling their old shares, he added.

Chorus, the network company spun off from Telecom last year, rose 0.4 percent to $2.79, snapping a two-day slide. A draft determination from the Commerce Commission on access charges could slash annual pretax earnings as much as $160 million, the company said this week. The government has hinted it may water down the regulator’s position.

“One would hope it has built a bit of a base at these levels,” Smalley said. Still, “the one thing that’s not going to be removed from the stock any time soon is that ongoing uncertainty.” A number of Chorus investors were previously holders of Telecom, where their experience of regulation was “nothing short of hideous.”

Xero, the cloud-based accounting service, rose 2.9 percent to $2.70, the biggest percentage gain on the NZX 50, having fallen from a record high yesterday.

“There were always going to be a bit of profit taken” given the gains, Smalley said. “The market’s willing to wear that you have to spend money to make money” he said of Xero’s plan to grow sales at the expense of short-term profit.

Hallenstein Glasson Holdings, the clothing retailer, was unchanged at $5.08 after telling shareholders at their annual meeting today that sales in the first four months of the year are up 7 percent and profit is tracking ahead of the same period a year ago.

Postie Plus Group tumbled 17 percent to 20 cents after saying there is a risk it has breached its bank covenants. Still, only 9,000 shares changed hands.

Units of the Fonterra Shareholders’ Fund fell 2.2 percent to $6.60, the lowest close since they roared higher in the debut last Friday, having been sold in the initial public offering at $5.50.

The units are now trading at more realistic levels once the hype and promotion of the IPO had died down and institutions had secured shares they missed out on in the IPO, Smalley said.

Fletcher Building, the biggest company on the NZX 50, fell 0.8 percent to $7.85. Telecom fell 0.2 percent to $2.27.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news