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

 


MARKET CLOSE: NZ shares gain on Summerset earnings

MARKET CLOSE: NZ shares gain on Summerset earnings; Fletcher rises, Chorus falls

Feb. 25 (BusinessDesk) – New Zealand shares rose, led by Summerset Group after the retirement village operator beat its IPO targets by tripling full-year earnings and raising its dividend. Chorus and Heartland New Zealand both fell after posting their results.

The NZX 50 Index gained 11.84 points, or 0.3 percent, to 4226.44. Within the index, 23 stocks rose, 19 fell and eight were unchanged. Turnover was $143 million.

Summerset rose 3.2 percent to $2.56 after reporting full-year profit of $14.8 million and declaring a dividend of 2.5 cents per share, beating the forecasts from its 2011 prospectus.

“The dividend was 25 percent higher than the IPO forecast,” said Greg Easton, an adviser at Craigs Investment Partners. “That’s what we’re really looking for – income from dividend streams – if they are growing, so much the better.”

Trade Me Group, the auction website, rose 3 percent to $4.44. Pumpkin Patch, the children’s clothing chain, rose 2.2 percent to $1.40 and jeweller Michael Hill International rose 1.6 percent to $1.25.

Fisher & Paykel Healthcare, which last week lifted full-year guidance a second time as demand for new breathing masks helps speed sales and margin growth, gained 1.6 percent to $2.56.

Fletcher Building, which sold off after its results last week, gained 1.2 percent to $8.78. Nuplex Industries rose 1.5 percent to $3.45.

Sky Network Television, the pay-TV company, rose 1.9 percent to $5.30 after reporting on Friday a 9 percent gain in first-half profit as subscribers migrated to its My Sky premium service and spent more.

Port of Tauranga, which posted record first-half earnings last week, gained 1.2 percent to $14, a record-high close.

OceanaGold fell 2.1 percent to $2.76 after the miner said transportation of copper-gold concentrate from its Didipio Mine in Luzon, the Philippines, had been temporarily suspended after authorities detained its trucks over a tax dispute.

Heartland New Zealand fell 1.4 percent to 72 cents after reporting a 9.2 percent gain in first-half earnings. Easton said the result disappointed some investors because the profit gain reflected a reduction in costs while the loan book was “pretty flat.”

Chorus, the network company spun off from Telecom in 2011, fell 3.3 percent to $2.94. First-half net profit was $84 million on sales of $525 million, beating some analyst estimates. But investors fretted over the company’s announcement that the cost of building a nationwide ultrafast broadband network has increased by some $300 million to as much as $1.9 billion.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Three Months On: Quake Reciovery In Kaikōura And Elsewhere

Three months after the magnitude 7.8 earthquake on 14 November, encouraging recovery progress is being made in affected communities. More>>

ALSO:

Jetstar, Qantas For Govt Transport: Government Still In Talks With Air NZ

The government is still negotiating with national carrier Air New Zealand in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news