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

 


MARKET CLOSE: NZ shares fall as US, China in focus

MARKET CLOSE: NZ shares fall as US, China in focus; GPG, WBC, NZOG drop

May 23 (BusinessDesk) – New Zealand shares fell as the prospect of a winding down of US stimulus and weak Chinese manufacturing weighed on equity markets across Asia. Guinness Peat Group dropped after signalling a delay in its transformation strategy. Westpac Banking Corp led lenders and insurers lower.

The NZX 50 Index fell 21.122 points, or 0.5 percent, to 4589.059. Within the index, 37 stocks fell, eight rose and five were unchanged. Turnover was $189 million.

Stocks were weaker across Asia after HSBC’s purchasing managers’ index showed a preliminary reading of 49.6 in May, the first contraction in seven months. Meantime, Federal Reserve chairman Ben Bernanke told the Joint Economic Committee of Congress yesterday that the Fed may reduce stimulus if the US economy shows more strength.

Winding back monetary policy in the US “changes the interest rate and exchange rate outlook for much of the world,” said Angus Gluskie of White Funds Management in Sydney. “That has an impact on stocks.”

Westpac fell 4.1 percent to $35.87 on the NZX, while Australia & New Zealand Banking Group declined about 4 percent to $33.99 and AMP fell 3 percent to $6.42 as the Chinese data added to the weight on Australian equities. Among other Australian firms that with shares on the NZX, Telstra fell 2.4 percent to $6. Australia’s S&P/ASX 200 Index was down about 1.8 percent.

Guinness Peat fell 3.9 percent to 50 cents after Chairman Rob Campbell told shareholders in Auckland the investment firm will have to keep certain corporate functions at GPG for longer than it intended as it figures out what level of funding it will have to provide for the Coats pension schemes.

Comvita, which produces health products from manuka honey and olive leaves, rose 2.7 percent to $3.85 after posting a 10 percent decline in full-year profit, beating its own guidance as it coped with a shortage of honey and higher costs.

Xero, the cloud-based accounting firm, rose 0.3 percent to $13.84 after posting an annual loss of $14.4 million, in line with guidance, while lifting operating revenue rose 102 percent to $39 million.

Fisher & Paykel Healthcare was the biggest bright spot, rising 5.6 percent to $3.20 after the maker of breathing masks and respirators said it expects to beat analyst estimates for 2014 profit after surpassing its own guidance for 2013.

Ryman Healthcare rose 1.1 percent to a new record close of $6.65.

Rakon tumbled 16 percent to 21 cents after posting a full-year loss of $32.8 million and writing down its Chinese and New Zealand units.

DNZ Property Fund fell 0.6 percent to $1.70 after it reported a 14 percent decline in annual distributable earnings yesterday, and completed its $60 million placement to institutional investors at a 1.8 percent discount.

New Zealand Oil & Gas fell 2.3 percent to 85 cents and Auckland International Airport declined 2.1 percent to $3.03.

Telecom declined 1 percent to $2.38 and Contact Energy fell 1.5 percent to $5.20.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>


Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news