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


MARKET CLOSE: NZ shares fall; Diligent tumbles

MARKET CLOSE: NZ shares fall; Diligent tumbles, MightyRiverPower, Meridian fall

Dec. 4 (BusinessDesk) – New Zealand shares fell as investors punished Diligent Board Member Services for delaying its financial statements again and election-linked regulatory fears continued to weigh on power companies such as MightyRiverPower, Contact Energy and Meridian Energy.

The NZX 50 Index dropped 49.698 points, or 1 percent, to 4734.155. Within the index, 38 stocks fell, four rose and eight were unchanged. Turnover was $143 million.

Diligent dropped 13 percent to $3.35 after the governance software developer said it won’t meet a Dec. 12 deadline to release its first-half results and now expects them to be as late as Feb. 28, when it is due to publish its full-year report. It is also working to restate three years of revenue. The company said it doesn’t expect NZX to suspend its share provided it meets the new deadline.

“Clearly they’re trying to action this as fast as they possibly can” said Nigel Scott, a director at Craigs Investment Partners. “The revenue for those three years has already been generated.”

Fellow tech shooting star Xero fell 5.5 percent to $31.51. Wynyard Group gained 2.7 percent to $1.15.

Kathmandu, the outdoor clothing chain that counts Australia as its biggest market, fell 4.3 percent to $3.35 as the kiwi dollar gained against the Australian dollar, leading a slide among some retailers. Warehouse Group dropped 3.8 percent to $3.55, Michael Hill International fell 0.7 percent to $1.39 and Hallenstein Glasson Holdings fell 0.2 percent to $4.14. Trade Me, the auction website, fell 3.3 percent to $4.14.

Goodman Property Trust fell 2.4 percent to $1, pacing a decline among property investors.

MightyRiverPower fell 3.4 percent to $1.99, sinking further below its $2.50 issue price. Contact fell 1.1 percent to $4.70. Meridian fell 2.6 percent to 92.5 cents, below the first payment of the instalment receipts of $1.

Finance Minister Bill English today lowered his estimate for the total proceeds from asset sales to a mid-point of $4.8 billion from $6.1 billion, based on the assumption it will be able to sell 49 percent of Genesis Energy for between $700 million and $1.1 billion in the first half of next year

The power companies “feel like they’ve got election pricing in the mix,” Scott said, referring to the Labour-Greens threat to regulate pricing if they win power next year.

Chorus, awaiting a government response to its regulated price cuts next year after minor parties withdrew support this week, fell 1 percent to $1.435.

Fisher & Paykel Healthcare fell 2 percent to $3.87 after shedding its 5.4 cent interim dividend. Ryman Healthcare, which is ex its 5.6 cent first-half dividend, was unchanged at $7.80 and Mainfreight, which shed its 13 cent interim payment, declined 1.1 percent to $11.55.

Fletcher Building, the biggest company on the NZX 50, fell 0.1 percent to $9.24 as the kiwi dollar reached a fresh five-year high of 90.54 Australian cents, reducing the value of sales New Zealand companies make across the Tasman. Ebos Group fell 2 percent to $9.18.

The strong cross rate “is one of the reasons there’s not as much as we’ve seen on the buy side and possibly a sell-side bias,” Scott said. Australian investors have played a key role in the bounty of New Zealand issuances this year.


© 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>>


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>>


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>>


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>>


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>>



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>>


'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>>


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>>


Get More From Scoop

Computer Power Plus
Search Scoop  
Powered by Vodafone
NZ independent news