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

 


MARKET CLOSE: NZ shares fall ahead of MRP sale close

MARKET CLOSE: NZ shares fall ahead of MRP sale close; Skellerup drops on guidance

May 2 (BusinessDesk) – New Zealand shares fell ahead of the close of the MightyRiverPower offer as investors free up funds to participate in the government sale. Skellerup Holdings dropped after cutting its annual profit guidance a second time.

The NZX 50 Index dropped 28.55 points, or 0.6 percent, to 4574.46. Within the index, 31 stocks fell, 12 rose and seven were unchanged. Turnover was $149.5 million.

Stocks were generally weaker across Asia, with the Nikkei 225 Index down 1 percent, after a second reading on China’s HSBC Flash PMI came in weaker.

Skellerup, the industrial rubber goods maker, tumbled 10 percent to $1.33 after saying net profit would be $17 million in the year ended June 30, from a $20 million forecast in February, because drought had hurt local demand and North American and European sales were tracking below forecast.

“Whilst the very recent rain is a welcome relief for our customers and Skellerup, we will not fully recover the deferred sales within the current financial year as farmers will delay some of their buying till the new season,” chief executive David Mair said.

Diligent Board Member Services fell 6.1 percent to $6.81 and Xero declined 6 percent to $12.50 as the two tech darlings extended their retreat from record highs.

Fisher & Paykel Healthcare declined about 3 percent to $2.61 and SkyCity Entertainment Group fell 2.9 percent to $4.40. Sky Network Television fell 2.2 percent to $5.67.

Kathmandu, the outdoor equipment chain, rose 9.4 percent to $2.69, adding to its 9.3 percent jump yesterday, when the company said sales rose 13 percent to $89.7 million in the 13 weeks ended April 28, maintaining the momentum in revenue growth from the first half of the financial year.

Ryman Healthcare, the retirement village operator that has recorded a decade of profit growth, rose 4.3 percent to a record $6.26.

“We are seeing increased interest from overseas investors as Ryman builds its first village in Australia and appoints its first Australian director,” said James Schofield, vice president, equity research, at First NZ Capital. “As baby boomers retire, Ryman will benefit from demographic trends on both sides of the Tasman.”

Rival retirement village company Summerset Group gained 1.3 percent to $3.20.

TrustPower rose 2.7 percent to $6.26 and Contact Energy gained 0.4 percent to $5.27 after business lobbyists called on the opposition Labour and Green parties to abandon a policy to regulate electricity.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news