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

 


MARKET CLOSE: NZ shares fall from near 5-year high; TEL dips

MARKET CLOSE: NZ shares fall from near 5-year high; Telecom, Xero dip

Jan. 4 (BusinessDesk) – New Zealand shares fell, as a rally that has pushed the NZX 50 Index to near a five-year high, faltered on concern the gains have left some equities fully valued. Telecom paced the decline and Xero dipped.

The NZX 50 fell 7.328 points, or 0.2 percent, to 4075.038. Within the index, 18 stocks fell, 20 rose and 12 were unchanged. Turnover was $70.1 million.

Telecom, the biggest phone company on the exchange, fell 1.4 percent to $2.18. The shares are rated ‘underperform’ based on the consensus of 10 recommendations compiled by Reuters, with a median price target of $2.23. Xero, the cloud-based accounting service that has soared 171 percent in a year, dropped 1.1 percent to $7.40.

“Investors need to be a little bit careful – on fundamentals some stocks look fully priced,” said Grant Williamson, a director at Hamilton Hindin Greene. “It will be interesting as we go into February and get earnings season underway to see how those companies are performing.”

Those that aren’t over-valued include Chorus, the network company spun off from Telecom in 2011, whose shares tumbled last month on the threat of increased control of its prices from the regulator. Its shares fell 2 percent to $2.91 today and have dropped 14 percent in the past month.

Contact Energy, another that Williamson says isn’t overpriced, rose 0.8 percent to $5.32. Potential listing of state-owned power companies this year have seen the stock marked down.

Fletcher Building, the biggest company on the NZX 50, rose 0.2 percent to $8.48. The company has sought clearance to sell its CSP Coating galvanised steel unit to Hamilton-based Perry Group as it looks to replace some of its treated metal products with imports.

Skellerup Holdings rose 3.1 percent to $1.67 and has gained 19 percent in the past 12 months. Tourism Holdings, the campervan company, jumped 9.2 percent to 71 cents.

Sky City Entertainment, the casino and hotel company, fell 1.1 percent to $3.75. It is up 9.2 percent in the past six months.

Fisher & Paykel Healthcare, which gets more than 50 percent of its sales in US dollars, fell 2 percent to $2.41. Goodman Fielder, the Australian food manufacturer, fell 2.5 percent to 78 cents.

Mainfreight, the transport and logistics company, rose 0.9 percent to $11.81 and Pumpkin Patch, the children’s clothing chain, fell 1.5 percent to $1.33.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news