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

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

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:

Get More From Scoop

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