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

 

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