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

 


MARKET CLOSE: NZ shares fall with MRP to join NZX50

MARKET CLOSE NZ shares fall as investors prepare for MRP to join top 50 index

July 19 (BusinessDesk) - New Zealand shares fell for a third session, led by Tower as institutional investors re-weight their portfolios ahead of MightRiverPower’s addition to the top 50 index next week.

The NZX 50 Index fell 25.079 points, or 0.6 percent, to 4538.306. Within the index, 31 stocks fell, 10 rose and nine were unchanged. Turnover was a lower-than-average $119.4 million.

MRP fell 0.8 percent to $2.38 on turnover of $36.6 million as fund managers build their exposure to the stock in anticipation of its entry to the benchmark index.

“As a result of that inclusion, there are a whole lot of down-weightings that occur. That’s having a bearing on the market,” said Rickey Ward, head of equities at Tyndall Investment Management. “They are readjusting or rebalancing their funds on the expectation of what they will look like come opening on Monday.”

Among companies with high turnover, Fletcher gained 0.1 percent to $8.48, Telecom declined 1.1 percent to $2.29 and Sky Network Television was unchanged at $5.33.

Insurer Tower led decliners falling 4 percent to $1.90. The company is in talks with the Reserve Bank over its insurance licence, and may face stricter solvency requirements. Port of Tauranga fell 2.4 percent to $14.15.

Cloud-based accounting firm Xero led gainers, rising 3.8 percent to $17, and outdoor equipment retailer Kathmandu advanced 2.3 percent to $2.70.

Wynyard Group, the intelligence software maker, fell 3.5 percent to $1.11 on its debut, with investors selling the stock from the outset of trading.

“A whole lot of people participated in it and they got 100 percent of their allocation which is never really a good sign,” Ward said. “I think people got an exposure that they didn’t really expect or didn’t want. So they are selling risk, selling stock that they didn’t expect to get.”

Stock exchange operator NZX fell 0.8 percent to $1.33. Dairy processor Synlait Milk is set to list on Tuesday next week. Alternative milk processor A2 Corp rose 1.5 percent to 68 cents and units in the Fonterra Shareholders’ Fund gained 0.4 percent to $.750.

Auckland International Airport, the country’s biggest gateway, fell 1 percent to $3.04 and Air New Zealand, the state-controlled national carrier, rose 0.3 percent to $1.47 after government figures showed a seasonally adjusted 1.5 percent fall in the number of international visitors last month.

Cavalier Corp was unchanged at $1.62 after rival carpet maker Godfrey Hirst announced plans to cut staff at its Dannevirke plant.

PGG Wrightson fell 3.1 percent to 31 cents after telling shareholders to expect a low-ball offer from Australian John Armour’s Washington Securities. Heartland New Zealand, whose shareholders will get a similar offer from Armour, dropped 2.3 percent to 84 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

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:

Get More From Scoop

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