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

 


MARKET CLOSE: NZ shares drop; Fletcher, Kathmandu fall

MARKET CLOSE: NZ shares drop; Fletcher, Kathmandu hurt by high kiwi, Hallenstein extends slide

By Suze Metherell

Jan. 17 (BusinessDesk) – New Zealand shares dropped as the kiwi hit an eight-year high against the Australian dollar, weighing on companies that make sales across the Tasman such as Fletcher Building and Kathmandu Holdings. Apparel retailer Hallenstein Glasson Holdings sank to a four-year low after posting weak sales this week.

The NZX 50 Index fell 27.343 points, or about 0.6 percent, to 4893.947. Within the index, 25 fell, 16 stocks rose and nine were unchanged. Turnover was $104 million.

The New Zealand dollar rose as high as 94.80 Australian cents amid further evidence the New Zealand economy is outpacing its neighbour, including data showing Australia shed jobs last month.

Outdoor clothing retailer Kathmandu fell 3.8 percent to $3.29, while New Zealand’s biggest company, Fletcher Building, dropped 1 percent, to $8.97. SkyCity Entertainment, which has casinos in Adelaide and Darwin, sank 1.6 percent, to $3.78.

“The high kiwi is an on-going issue, especially coming up to the reporting round,” said David Price, a broker at Forsyth Barr. “Before Christmas we had a lot of companies saying that international sales were high, but the transfer into the New Zealand dollar loses that.”

Hallenstein, which has said it is battling against offshore internet retailers, fell 9.7 percent, compounding yesterday’s 18 percent drop, to $3.16. Restaurant Brands New Zealand fell 1.4 percent to $2.78. Warehouse, New Zealand’s biggest listed retailer rose 0.3 percent to $3.75, while children’s apparel retailer Pumpkin Patch was unchanged at 73 cents.

“This is probably not a cyclical issue, but here to stay,” Price said. The high kiwi entices local bargain hunters to spend up big on northern hemisphere online sales.

Xero, the cloud accounting software firm, rose 1.3 percent to $41.80, leading the continuing trend of investor enthusiasm for growth stocks. Security software developer Wynyard Group rose 4.2 percent to $2.50, another record high. Diligent Board Member Service, which makes software for company directors, rose 1.5 percent to $4.83.

Auckland International Airport rose 1 percent to $3.585, while Telecom dropped 2.9 percent to $2.36. The national carrier, Air New Zealand, fell 0.3 percent to $1.695.

Chorus, the network provider and builder of the government’s ultra-fast broadband, fell 1.6 percent to $1.55.

Partially privatised electricity company MightyRiverPower fell 0.7 percent, to $2.025, while New Zealand’s largest renewable energy generator, Meridian Energy, rose 0.5 percent to 98.5 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news