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

 


MARKET CLOSE: NZ shares join Asia-wide rout; CNU, DIL drop

MARKET CLOSE: NZ shares join Asia-wide rout; Chorus, Diligent, Westpac drop

June 20 (BusinessDesk) – New Zealand shares fell, joining an Asia-wide rout after the Federal Reserve signalled an end to bond buying, weak Chinese manufacturing figures and economic growth at home that missed expectations. Chorus, Diligent Board Member Services and Westpac Banking Corp paced the slide.

The NZX 50 Index fell 49.62 points, or 1.1 percent, to 4395.93. Within the index, 39 stocks dropped, eight rose and three were unchanged. Turnover was $108 million.

Chorus, the network company spun off from Telecom in 2011, dropped 5.2 percent $2.36 and has fallen 15 percent this year amid uncertainty about regulation governing its access charges. Fletcher Building fell 1.3 percent to $8.15.

Westpac fell 4.4 percent to $33.20, Australia & New Zealand Banking Group dropped 3.4 percent to $33.50 and AMP declined 3.3 percent to $5.80 as the S&P/ASX 200 Index shed 2.2 percent. All major equity benchmarks across Asia fell, following declines on Wall Street.

“We got barbequed by Big Ben,” said Shane Solly, head of equities at Mint Asset Management, referring to Federal Reserve chairman Ben Bernanke’s comments.

Taken together with the unofficial PMI pointing to a contracting Chinese manufacturing sector, “the exuberance of a few weeks ago is gone,” he said. “Overinflated stock prices have been stripped out.”

Diligent, which had climbed 46 percent this year, fell 5.3 percent to $7.55 after the company said today that it incorrectly recognised revenue from new customer agreements and upgrades. The error didn’t affect overall revenue though the disclosure is the latest in a series of missteps.

Diligent has had “an unfortunate series of misadventures,” Solly said. That is hopefully at an end as the company’s new chief financial officer helps put the accounts into place.

OceanaGold, the operator of the Macraes gold field, fell 12 percent to $1.60 as spot gold fell to a month low on the outlook for a tapering in Fed stimulus.

Sky Network Television declined about 3 percent to $5.25, adding to the previous day’s slide when a rival group emerged with rights to English Premier League football rights. Solly said the situation showed rivals could get access to content under current regulation and Sky was likely to recover, given its strong management team.

Fisher & Paykel Healthcare, which gets more than 50 percent of its sales in US dollars, rose 2.4 percent to $3.42 as the kiwi dollar fell to about 78.50 US cents.

Postie Plus Group sank 25 percent to 12 cents a day after appointing Hamish Stevens to its board as an independent director. The clothing chain has been under pressure this year as it works through major issues with its outsourced distribution centre.

Energy Mad dropped 16 percent to 31 cents after the energy efficient lightbulb maker yesterday said it sold its 20 percent stake in a Chinese factory to its partner for about $1.7 million.

Units in the Fonterra Shareholders’ Fund fell 0.7 percent to $7.18 after government figures showed a shrinking primary sector trimmed economic growth in the first quarter due to the widespread drought. Rural services firm PGG Wrightson was unchanged at 30 cents.

Delegat’s gained 1 percent to $4.05 after the winemaker completed its acquisition of the Barossa Valley Estate assets for A$24.1 million. That was slightly below the A$24.7 million initially flagged due to inventory adjustments.

MightyRiverPower fell 1.7 percent to $2.26, back to a record low, despite a Forsyth Barr report earlier this week recommending shareholders hold the shares. Government figures today showed the electricity, gas, water and waste services sector shrank 4.4 percent in the first quarter as declining metal production manufacturing sapped electricity generation. Contact Energy fell 1.2 percent to $5.03 and TrustPower gained 0.1 percent to $7.07.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news