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

 


MARKET CLOSE: NZ shares fall on Fletcher result; FPH gains

MARKET CLOSE: NZ shares fall on Fletcher result; F&P Healthcare gains on guidance

Feb. 20 (BusinessDesk) – New Zealand shares fell, led by Fletcher Building after the biggest company on the NZX 50 Index posted first-half earnings highlighting tough times in Australia. Fisher & Paykel Healthcare jumped after unexpectedly lifting its guidance.

The NZX 50 fell 29.97 points, or 0.7 percent, to 4214.24. Within the index, 25 stocks fell, 16 rose and nine were unchanged. Turnover was $169.6 million.

Fletcher, the Australasian building products and construction group, fell 4.8 percent to $8.87 after reporting a 1 percent increase in interim earnings, missing some estimates. It saw no immediate improvement in the Australian market, where the biggest earnings drop came from its Crane Group unit.

“Australia including Crane disappointed the market,” said James Lee, head of institutional equities at First NZ Capital. “It’s hard to see the Australian market turning around in the short term.”

F&P Healthcare, which makes breathing masks and respirators, climbed 7.7 percent to $2.52 after raising its full-year profit guidance to $75 million as demand for new breathing masks helps speed sales and margins widen. The company gets more than 50 percent of sales in US dollars.

“Healthcare surprised the market today,” Lee said. It has lifted guidance “despite a much stronger currency. The market will assume that it’s slightly conservative as well.”

Trade Me Group, the auction website, fell 2.3 percent to $4.31. The company lifted first-half profit 2.7 percent to $37.4 million. That was just below Forsyth Barr analyst Rob Mercer’s forecast of $38.1 million though it beat the company’s prospectus forecast.

Warehouse Group, the biggest retailer on the bourse, fell 3.7 percent to $3.40. Hallenstein Glasson Holdings, the clothing chain, fell 1.5 percent to $5.35.

Contact Energy rose 2.9 percent to $5.40 having announced yesterday that first-half profit rose 29 percent to $88 million as the impact of low wholesale electricity prices offset flat demand and shrinking margins on retail electricity sales.

NZX fell 2.3 percent to $1.25. The stock exchange operator this week posted a 32 percent decline in full-year profit as one-time costs contributed to expenses growing faster than sales.

Ebos Group, which posted earnings late yesterday, rose 2.3 percent to $9.10. The healthcare and animal care products company lifted its interim profit by 29 percent thanks to contribution from the Masterpet business.

APN News & Media, whose chairman and chief executive left this week over a disagreement with major shareholders on capital raising, was unchanged at 35 cents on the NZX. The yield on its exchange-listed March 2016 bonds, which pay a coupon of 7.86 percent, jumped to 17 percent, according to NZX figures.

Seeka Kiwifruit Industries rose 4.2 percent to $1.25 after posting full-year earnings before tax, impairment, revaluations and restructuring of $8.9 million, beating its guidance range of $5.7 million to $6.4 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news