MARKET CLOSE: NZ shares continue slow rise, Diligent up
MARKET CLOSE NZ shares continue slow rise as Diligent recovers
Sept 10 (BusinessDesk) – New Zealand shares rose again, with direction given by Diligent Board Member Services, which appears to be re-rating ahead of a delayed earnings announcement and following stock exchange censure, amid a positive tone across major stocks.
The NZX 50 Index rose 13.738 points, or 0.3 percent, to 4,627.757. Within the index, 15 stocks rose, 14 fell, and 21 were unchanged. Turnover was $131 million.
Diligent, which suffered a fine and censure from the NZ Market Disciplinary Tribunal for Listing Rules breaches last week, continued to rebound, up 4.83 percent to $5.64 after trading as low as $4.35 last week.
“It’s actually been a great stock for those happy to pounce on those sorts of short term opportunities,” said Craig Lister at Craigs Investment Partners in Tauranga. The company was still late releasing its latest financial results, but after “a rough year of not getting it right first time, one hopes they are taking their time and we will just see it once.”
The most dramatic movement of the day was a 2.9 percent fall in the value of Port of Tauranga shares, to $14.42 after the company announced a recently acquired marshalling business had lost a major log marshalling contract.
PoT paid $34 million for Quality Marshalling in February, and the contract in question equated to 60 percent of turnover, said Lister.
“It’s certainly a negative but it’s also relatively small when you consider the Port of Tauranga operation,” he said. The port turned over $244 million last year for a net profit of $112.1 million. Quality Marshalling had been expected to contribute annual revenues of around $18 million, said Lister. That would now be cut by around $10 million.
Elsewhere, Nuplex Industries rose 2.8 percent to $3.30 on the same day as announcing it would change its chairman in November, when Robert Aitken retires and is replaced by Peter Springford.
Kathmandu also continued its stellar run over the last year, putting on 1.43 percent to close at $2.84, up 60 percent in the last 12 monthys, although still below a high point of $3.05 reached in recent days.