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

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news