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

 

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news