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

 


MARKET CLOSE: NZ shares snap 3-day slide; Xero, Chorus gain

MARKET CLOSE: NZ shares snap 3-day slide; Xero, Chorus gain

Dec. 6 (BusinessDesk) – New Zealand shares rose, snapping a three-day slide as equity markets across the Asia-Pacific region generally gained. Xero resumed its climb after two US funds gave the company equity capital and Chorus clawed back from its regulator-induced plunge.

The NZX 50 Index rose 16.11 points, or 0.4 percent, to 4023.36. Within the index, 23 stocks rose, 14 fell and 13 were unchanged. Turnover was $131 million.

Xero, the cloud-based accounting service, rose 5.6 percent to $7.60, edging back to the record high $7.75 reached on Monday, having raised $60 million selling shares to Peter Thiel-backed Valar Ventures and Matrix Capital. That’s enough funds for three years at the current burn rate.

“Clearly there’s been quite a substantial change in the makeup of the register,” said Shane Solly, portfolio manager at Mint Asset Management. Xero now has “a bit of capital to support the growth.”

Chorus, the network company spun off from Telecom last year, rose 2.2 percent to $2.85, its second daily gain after a two-day, 18.5 percent slump after the Commerce Commission released a draft determination the company said could slash annual pretax earnings as much as $160 million.

“We’re still in the depths of uncertainty with Chorus,” Solly said. “People particularly concerned have done their selling. For a lot of New Zealand businesses, where the regulator’s been involved New Zealand doesn’t have a great track record.”

OceanaGold, whose interest range from the Macraes gold field in central Otago to its Didipio project in the Philippines, fell 1.9 percent to $3.53, extending yesterday’s 12.2 percent slump after the company unexpected raised C$93.3 million selling 30 million shares for C$3.11 apiece in Canada.

“There’s a bit of surprise the company raised capital when people didn’t think they needed to,” Solly said.

Fletcher Building, the biggest company on the NZX 50, rose 1.5 percent to $7.97. The Reserve Bank kept its official cash rate at a record low 2.5 percent, helping anchor mortgage rates and allowing the housing market top continue its revival.

Telecom rose 0.2 percent to $2.275.

Postie Plus Group rose 5 percent to 21 cents after announcing it has again avoided a breach of its banking covenants and gained a 12-month extension on its facilities. Bank of New Zealand completed its annual review of the banking facilities,” the Christchurch-based company said in a statement.

Pumpkin Patch, the children’s clothing retailer, rose 4 percent to $1.30 and carpet maker Cavalier rose 3 percent to $1.71.

NZX, the stock market operator, rose 1.7 percent to $1.23 after holding an investor open day. NZ Oil & Gas climbed 1.7 percent to 88 cents.

(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