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

 


MARKET CLOSE: NZ shares fall in busy trading; Telecom drops

MARKET CLOSE: NZ shares fall on busy trading day; Telecom drops, SkyCity gains

Feb. 7 (BusinessDesk) – New Zealand shares fell in the busiest session so far this year, paced by Telecom amid concern the earnings season may not reveal results that warrant high stock valuations. SkyCity Entertainment rose.

The NZX 50 Index fell 16.706 points, or 0.4 percent, to 4195.24. Within the index, 26 stocks fell, 12 rose and 12 were unchanged. Turnover was $202.7 million, almost twice the daily average.

Telecom fell 2 percent to $2.305 with 11.4 million shares changing hands. Fletcher Building, the biggest company on the index, fell 0.8 percent to $8.90, with 7.4 million shares traded. Sky Network Television, the nation’s dominant pay-TV company, ended the day unchanged at $5.17 with 4.4 million shares changing hands.

‘On one side there’s a question mark about some of the earnings,” said David Price, a broker at Forsyth Barr. “We’ve had quite a strong run and multiples are above 15” for the NZX 50. “If the earnings are there, that’s fine,” he said.

Government figures showed that even while the unemployment rate declined to 6.9 percent in the fourth quarter, the participation rate fell to 67.2 percent, its lowest level in almost nine years and employment shrank 1 percent, painting a tepid picture of the labour market and broader economy.

Pumpkin Patch, the children’s clothing chain, fell 2.9 percent to $1.33, the biggest decline on the NZX 50.

Xero, the cloud-based accounting company, fell 2.7 percent to $6.84 even after announcing late in the trading session that it added more than 23,000 customers to its client list since December and is on track to double last year's $19.3 million in annual revenue.

Chorus, the network company spun off from Telecom in 2011, was unchanged at $2.86 on a day it said its general manager of network build Chris Dhyrberg will leave the company in April. Dhyrberg has been responsible for the roll-out of the ultra-fast broadband fibre network and the company’s joint venture with Vodafone New Zealand to deliver the rural broadband initiative.

Guinness Peat Group was steady on 60 cents after the investment firm liquidating its portfolio sold out of ASX-listed aluminium fabrication group Capral for some A$85.3 million.

SkyCity rose 1.5 percent to $4.03 and Australia & New Zealand banking Group climbed 2.7 percent to $34, leading gainers on the NZX 50.

PGG Wrightson, the nation’s biggest rural services company, fell 2.3 percent to 43 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news