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

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news