MARKET CLOSE: NZ shares gain as Fletcher, Telecom rebound
MARKET CLOSE: NZ shares gain as Fletcher, Telecom rebound; NZX falls
Feb. 18 (BusinessDesk) – New Zealand shares rose as Fletcher Building and Telecom bounced back from Friday’s selloff when investors were selling liquid stocks to participate in the Auckland International Airport selldown. NZX and Freightways fell after posting their results.
The NZX 50 Index rose 17.74 points, or 0.4 percent, to 4214.47. Within the index, 23 stocks rose, 18 fell and nine were unchanged. Turnover was a lower-than-average $97.7 million.
Fletcher, the biggest company on the NZX 50 and typically the most heavily traded, rose 1.5 percent to $9. It fell by a similar amount on Friday. Telecom rose 1.6 percent to $2.25.
Auckland Airport fell 0.4 percent to $2.76, adding to Friday’s 5.8 percent decline after the NZ Superannuation Fund sold 7.6 percent of the airport company at a discount to its last traded price.
“Fletcher and Telecom got back some of Friday’s hit,” said David Price, a broker at Forsyth Barr.
Contact Energy, the biggest power company on the bourse, fell about 1 percent to $5.08 ahead of the release of its interim results tomorrow. Forsyth Barr is forecasting a 31 percent gain in reported profit as the company benefited from favourable dry weather.
NZX, the stock market operator, fell 2.3 percent to $1.27 after reporting a 32 percent decline to $9.86 million in full-year profit, missing some estimates, and giving little indication of the outlook for 2013.
Freightways, the courier and data management company, declined 1.1 percent to $4.45 after posting an 11 percent gain in first-half profit to a record $21 million and saying the outlook is for a slow pace of growth. It will pay an interim dividend of 9 cents, less than the 9.5 cents Forsyth Barr had forecast.
“The whole market is on multiples of over 15 and when you’re getting that sort of multiple you want to see reasonably strong growth to push forward,” Price said. “If you don’t beat forecasts or deliver a positive outlook then you’ll probably see your stock marked back.”
Trade Me Group, the auction website, rose 1.4 percent to $4.39. The company is scheduled to release its first-half results on Wednesday and may post a 5 percent gain in reported profit, according to First NZ Capital.
Retailers were mixed. Kathmandu, the outdoor equipment chain, rose 1.7 percent to $2.34. Warehouse Group, the biggest listed retailer, rose 0.6 percent to $3.56.
Pumpkin Patch, the children’s clothing retailer, fell 1.4 percent to $1.42 and Restaurant Brands, the fastfood company, fell 0.7 percent to $2.81.
Property for Industry, the listed industrial property investor, slipped 0.4 percent to $1.235 after reporting a 7.5 percent fall in annual earnings as the company rejigged its portfolio.
Rakon, which cut its guidance last week, fell 3.7 percent to 24 cents. Nuplex Industries fell 1.1 percent to $3.48.