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

 


MARKET CLOSE: NZ shares drop; Fletcher down on Aust exposure

MARKET CLOSE: NZ shares drop; Fletcher, Ebos down on Australian exposure

Dec. 18 (BusinessDesk) – New Zealand shares fell as the kiwi dollar held near a five-year high against its Australian counterpart, weighing on companies with operations across the Tasman including Fletcher Building and Ebos Group.

The NZX 50 Index fell 52.141 points, or 1.1 percent, to 4675.878. Within the index, 38 stocks fell, six gained and six were unchanged. Turnover was $115 million.

The New Zealand dollar made a new five-year high, reaching about 93 Australian cents, and creating headwinds for businesses bringing home revenue from Australia. The local economy is growing at a faster clip than Australia’s, putting New Zealand ahead in terms of the timing of rate hikes and underpinning the kiwi.

Fletcher, which has about 50 percent of its operations in Australia, dropped 2.2 percent to $8.35. Ebos Group, which this year made its biggest ever acquisition in Australia, fell 2.3 percent to $8.80.

“The strength in the kiwi dollar against the Australian dollar is starting to play on these companies,” said Grant Williamson, a director at Hamilton Hindin Greene. “We think the kiwi dollar will remain strong.”

Chorus dropped 4.7 percent to $1.43, leading the index lower. The network operator has fallen from as high as $3.08 in early August on concern regulated price cuts will weaken its balance sheet, force it to stop dividend payments and cut costs.

Summerset Group gained 1.3 percent, leading gainers, after the retirement village operator and developer bought two blocks in Christchurch. The company plan to develop two new villages in the country’s second biggest city, spending some $200 million. Rivals Metlifecare and Ryman Healthcare fell 1 percent to $3.97 and 1.4 percent to $7.78 respectively.

Kathmandu gained 0.6 percent to $3.33 after a substantial shareholder notice showed Fisher Funds Management slipped below the 5 percent threshold after a series of transactions since late October.

Hallenstein Glasson fell 1.4 percent to $3.65 after the clothing chain appointed Tracy Shaw as its new boss of the Glassons stores. Shaw was most recently general manager at Jag in Melbourne.

MightyRiverPower dropped 1.5 percent to $2.03 after the state-controlled power company appointed outgoing Transpower boss Patrick Strange as a new director. Meridian Energy slipped 0.5 percent to 99.5 cents.

Dual-listed Australia & New Zealand Banking Group fell 1.1 percent to $32.80 on the NZX after the lender named David Gonski to succeed John Morschel as chairman. Gonski currently chairs Coca-Cola Amatil. Rival Westpac Banking Corp declined 0.5 percent to $33.13, while financial services firm AMP sank 2.8 percent to $4.54.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news