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


MARKET CLOSE: NZ shares fall as Fonterra units cut to sell

MARKET CLOSE: NZ shares fall as Fonterra units cut to sell; Wynyard, tech stocks gain

Dec. 10 (BusinessDesk) – New Zealand shares fell as a brokerage put a sell rating on Fonterra Shareholders’ Fund ahead of what’s expected to be a hike to its forecast milk payment tomorrow. Wynyard Group, Xero and Diligent Board Member Services rose.

The NZX 50 fell 11.8 points, or 0.3 percent, to 4706.506. Within the index, 25 stocks fell, 17 gained and eight were unchanged. Turnover was $133 million.

Fonterra dropped 2.1 percent to $6.10. Last month the dairy giant flagged a $157 million charge against inventory at its NZ Milk unit because of a squeeze between rising input costs, represented by the farmgate milk price, and prices for value-added products such as casein and cheese. Craigs Investment Partners analyst Arie Dekker cut the units to sell, lowered his 12-month price target and reduced his forecast for 2014 earnings.

“The market in general doesn’t really understand the relationship between the milk price and Fonterra’s profit,” said Greg Easton, an adviser at Craigs. “Farmers just want a high milk price.”

Air New Zealand ended the day down 0.6 percent at $1.62 after the Auckland-based carrier said normalised earnings before tax is expected to increase about 20 percent in the six months ending Dec. 31. The results will include about $10 million of redundancy costs.

“They are performing exceptionally well in what is a tough sector,” Easton said. “They’ve done a lot of work in optimising their routes and fleet.”

Wynyard Group jumped 8.6 percent to $1.14 after the intelligence software developer grabbed its third new client in as many weeks. The Auckland-based company signed up the Thai Customs Department today, where Wynyard’s software will be used in preventing drug trafficking at the South East Asian nation’s northern border.

The deal adds to Wynyard’s growing customer list, with recent additions including Manayer Marketing Management and TransCash Corp, and Galadari Brothers in the United Arab Emirates.

“The fact they are getting these contracts is having a product that sells in the market,” Easton said.

Among other tech companies, Diligent climbed 4.2 percent to $3.75 and Xero rose 3 percent to $33.

Companies with exposure across the Tasman fell after the kiwi rose to fresh five-year highs against its Australian counterpart, reducing the value of revenue derived in Australia. Fletcher Building, the biggest listed company on the exchange, fell 0.3 percent to $8.82, outdoor equipment retailer Kathmandu dropped 2.9 percent to $3.30, clothing chain Hallenstein Glasson dropped 1.7 percent to $3.95 and jewellery chain Michael Hill International declined 1.4 percent to $1.44.

Pyne Gould Corp was unchanged at 45 cents after shareholders agreed to re-domicile the asset management firm to Guernsey and seek a London Stock Exchange listing. The company is in the process of selling its remaining New Zealand assets and wants to headquarter itself closer to a more astute investor base.

Tower was unchanged at $1.66. After the close of trading the general insurer said it will return some $70 million in capital to shareholders in a 1-for-5 buyback at $1.81 apiece.

Fast food operator Restaurant Brands gained 1.1 percent to $2.30 after government figures showed spending on credit and debit cards rose more than expected in November, driven by increased spending on consumables. Z Energy fell 0.9 percent to $3.50 after as the figures showed lower spending on petrol.


© 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