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

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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