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

 


MARKET CLOSE NZ shares fall from five year NZX50 high

MARKET CLOSE NZ shares fall from five year NZX50 high

Jan 29 (BusinessDesk) - New Zealand shares fell slightly after briefly hitting a five year high yesterday, with some analysts claiming there's case for New Zealand equities to go higher if the forthcoming earnings season surprises with stronger than expected results.

The NZX50 Index of leading stocks was down 4.148 points, of 0.99 percent, at 4,200.289. Turnover remained relatively light, at $66.895 million. Within the index, 17 stocks rose, 18 stocks fell, and 15 were unchanged.

Among losers on the day was Fonterra Shareholders Fund, which dropped another 1.12 percent to $7.05, its lowest point since Dec 18, as the world's largest dairy exporter continued to deal with the fallout from the discovery of minute traces of a nitrate inhibitor, known as DCD, in milk powder products.

A Beijing-based New Zealand businessman and commentator, David Mahon, said the issue had received no significant coverage in Chinese news media.

"As long as New Zealand is clear and outspoken in terms of the facts to date, and it seems the Prime Minister's (John Key) statement was straightforward and unequivocating, that is what people will listen to. You don't make statements like that unless you have the science to back it up," Mahon told Fairfax Media.

Elsewhere, Milford Asset Management portfolio manager Mark Warminger argued that the current forward price/earnings ratio on New Zealand stocks, at around 15.5, looked high and that it was "simple to conclude that New Zealand equities are therefore over-valued."

"But such simple analysis does not take into account where we are in the economic cycle."

After several years of unexciting but stable earnings, analysts had become "over-cautious and we believe that earnings are likely to exceed expectations over the next year as the economic recovery continues."

Oceana Gold fell furthest, down 2.69 percent to $3.25, Steel & Tube was off 1.53 percent to $2.58, and Fletcher Building was among gainers, edging up 0.54 percent to $9.26.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news