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

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>


Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news