MARKET CLOSE: NZ shares mixed as Hallenstein slips
MARKET CLOSE: NZ shares mixed as Hallenstein slips, Sky TV gains, Meridian looms
Sept. 26 (BusinessDesk) – New Zealand shares were mixed, keeping the NZX 50 Index at a record high as Sky Network Television continued to benefit from inclusion in Australia’s benchmark index and Hallenstein Glasson Holdings led retailers lower after posting weaker earnings.
The NZX 50 rose 0.75 points, or 0.02 percent, to 4765.473. Within the index, 19 stocks rose, 21 fell and ten were unchanged. Turnover was a higher-than-average $155 million, with some trading likely to be investors freeing up funds ahead of the Meridian Energy float next month.
Sky TV, which entered the S&P/ASX 200 Index on Sept. 20, rose 0.3 percent to $5.90 and was the most heavily traded stock by value, with $35 million of turnover.
Admission to the ASX 200 “has created a new level of institutional interest” in Sky TV, said Greg Easton, as adviser at Craigs Investment Partners.
SkyCity Entertainment Group rose 1 percent to $4.05, with trading worth $15.9 million, Air New Zealand rose 1.4 percent to $1.455, Nuplex Industries gained 1.2 percent to $3.50 and Telecom gained 0.9 percent to $2.34.
“As an economy we’re still a bit more attractive than others and yields are still up there,” Easton said.
Heartland New Zealand rose 2.4 percent to 86 cents, the biggest percentage gain on the index.
Hallenstein, the clothing retailer, fell 2.2 percent $4.93 after reporting an 11 percent slide in annual earnings to near the bottom of its forecast range, as margins at the women’s wear Glasson unit came under pressure. The company had warned profits would fall because of tough trading conditions in Australian and unseasonal weather.
Children’s clothing retailer Pumpkin Patch, another retailer that gave a profit warning, fell about 1 percent to $1 ahead of its results tomorrow. Postie Plus, which also reports tomorrow, rose 7 percent to 12 cents.
Auction website Trade Me dropped 1.3 percent to $4.67 while Kathmandu slipped 0.6 percent $3.43, having soared to a record in the two days since it posted record earnings.
“Retailers doing well are ones that have specific lines of stock as opposed to day-to-day clothing,” Easton said. “Those guys seem to be struggling.” The weather, including a mild New Zealand winter, also played a part, he said. “Winter woolies weren’t needed this year.”
Fisher & Paykel Healthcare slipped 0.3 percent to $3.65. Recent gains in the New Zealand dollar may limit profit gains at medical device maker, which exports about 99 percent of its products, analysts at Craigs Investment Partners said in a report. They trimmed back expectations for the company’s 2014 and 2015 profit.
Contact Energy climbed 1.9 percent to $5.40, A2 Corp rose 1.5 percent to 70 cents and Ebos Group rose 1.4 percent to $10.11. Fletcher Building slipped 0.5 percent to $9.54.