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

 

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Scoop Business: ComCom Charges Hawkins’ Finance Companies Over Debt Recovery

The Commerce Commission has filed criminal proceedings against two finance companies run by former 1980s high-flyer Allan Hawkins over their debt recovery practices. More>>

ALSO:

Science Media Centre: The Big Science Stories Of 2014

It was a dramatic year for science, one that witnessed a severe outbreak of Ebola in West Africa and an historic mission to land a space probe on a comet. On the home front... headlines with animal testing for 'legal highs', 1080 use to tackle increased pest numbers and court action over genetically modified organisms among the most-covered stories. More>>

ALSO:

Tis The Season For Route Announcements: Air NZ Will Start Direct Flights To South America

Air New Zealand, the national carrier, will start its first scheduled service to South America, with direct flights between Auckland and Buenos Aires in Argentina starting in December next year, as it seeks to expand its services in the Pacific Rim. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news