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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news