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

 


MARKET CLOSE: NZ shares fall as high kiwi weighs on KMD, SKC

MARKET CLOSE: NZ shares fall as high kiwi weighs on Kathmandu, SkyCity, Fletcher

Jan. 14 (BusinessDesk) – New Zealand shares fell as the kiwi dollar’s 17 percent gain against its Australian counterpart in the past year hurt companies with businesses across the Tasman, including Kathmandu, SkyCity Entertainment Group and Fletcher Building.

The NZX 50 Index fell 34.242 points, or 0.7 percent, to 4865.159. Within the index, 33 stocks fell, 12 rose and five were unchanged. Turnover was $94 million.

The New Zealand dollar recently traded at 92.69 Australian cents from as little as 79.29 cents a year ago, eroding the value of Australian sales when they’re repatriated home. Economists at HSBC say the currencies could reach parity this year as the local economy outperforms Australia’s.

Kathmandu, the outdoor clothing chain that counts Australia as its largest market, fell 3.8 percent to $3.32. Brisbane-based jeweller Michael Hill International dropped 2.7 percent to $1.44 and SkyCity, which has casinos and hotels in Darwin and Adelaide, declined 1 percent to $3.85.

Fletcher Building, which counts Australia as its second-largest market, fell 0.8 percent to $8.93 while Ebos Group, which made its biggest ever acquisition in Australia last year, declined 0.4 percent to $9.55. A2 Corp fell 3.3 percent to 88 cents.

“They’re hit by a double whammy – the Australian economy looks depressed, so they’re earning less because things are slower, and then when they bring those dollars back they’re hit by the high kiwi dollar,” said Mark Lister, head of private wealth research at Craigs Investment Partners.

Australia & New Zealand Banking Group fell 2.4 percent to $33.30 on the NZX and Westpac Banking Corp fell 1.3 percent to $34.17.

New Zealand Oil & Gas fell 3.6 percent to 80.5 cents and Sky Network Television dropped 2.5 percent to $5.94.

Meridian Energy fell below its issue price of $1, dropping 2 percent to 98 cents and MightyRiverPower fell about 1 percent to $2.08 as investors fretted that a change of government could herald increased regulation of electricity prices. Contact Energy dropped 2 percent to $5.04 and gas and electricity lines company Vector fell 1.9 percent to $2.57.

“Regulatory risk is weighing on those sectors which could be in for attention from a Labour government,” Lister said.

Among other companies facing or potentially facing regulatory intervention, network operator Chorus fell 0.7 percent to $1.51.

Diligent Board member Services climbed 9.8 percent to $4.81, leading gainers on the benchmark index, after the governance software developer said it added 145 net new clients in the three months ended Dec. 31, compared to 193 a year earlier. As at Dec. 31 it had 2450 companies and 3,405 boards as clients, with a customer retention rate of 97 percent.

SLI Systems, which offers search engine services to retailers, jumped 13 percent to $2.31 after announcing it had more than 1 billion search queries in December, up 50 percent from a year earlier.

Burger Fuel Worldwide, the NZAX-listed fast food chain franchisor, soared 80 percent to $2.70 after saying it will $5.9 million from a new US investor, Franchise Brands, to help fund its global growth aspirations.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news