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

 


MARKET CLOSE: NZ shares slide on earnings season nerves

MARKET CLOSE: NZ shares slide as earnings season nerves kick in; Hallenstein, SkyCity down

Feb. 10 (BusinessDesk) – New Zealand stocks fell, paced by SkyCity Entertainment Group, amid speculation the impending earnings season may show the impact of a high kiwi dollar. Hallenstein Glasson Holdings led the index lower after figures showed weak clothing sales.

The NZX 50 Index fell 7.730 points, or about 0.2 percent to 4833.058. Within the index, 25 stocks fell, 12 rose and 13 were unchanged. Turnover was $91.7 million.

Earnings season begins in earnest this week. SkyCity, which is due to report on Wednesday, fell 1.6 percent to $5.74. In December the company, which has casinos in Adelaide and Darwin, said first-half profit will fall due to the strong kiwi against the Australian dollar.

“What concerns investors really is the effect of the strong kiwi against the Aussie, which will start to impact on earnings,” said James Smalley, a director at Hamilton Hindin Greene. “But it will also be in the company’s guidance going forward, the onus will be on companies that have significant Australian exposure to work with the strong kiwi.”

Fletcher Building, which counts Australia as its No. 2 market, slipped 0.2 percent to $8.98, while Brisbane-based jeweller Michael Hill International lost 1.4 percent to $1.38.

Companies are required to give forward guidance on how they expect their business to track over the next 12-months and investors monitor those forecasts closely, Smalley said.

“Investors are, I wouldn’t say nervous, but are not buying ahead of the results. The general feeling is that there aren’t going to be too many upside surprises, but investors will be looking for the next 12-month forecasts,” Smalley said.

Paymark, which processes 75 percent of New Zealand’s electronic transactions, said that while retail has gained, clothing does continue to lag. Clothing chain Hallenstein fell 4.9 percent to $2.90, its lowest price in more than four years.

Online auction website Trade Me Group slid 1.1 percent to $3.76 while outdoor clothing retailer Kathmandu Holdings dropped 0.6 percent to $1.38. New Zealand’s largest listed retailer, Warehouse Group, declined 0.3 percent to $3.45.

As the election draws closer investors also consider the potential for some companies to come under increased regulation, a particular concern for the energy market, Smalley said.

Auckland lines company Vector fell 4 percent to $2.38.Partially-privatised energy company MightyRiverPower declined 0.8 percent to $1.975, while Meridian Energy was unchanged at $1 as was Contact Energy at $5.25.

Auckland International Airport gained 0.8 percent to $3.69 and Air New Zealand rose 1.5 percent to $1.705. Telecom rose 2.2 percent to $2.375. Sky Network Television declined 0.5 percent to $5.74.

OceanaGold was the index’s best performer on the day, gaining 3.8 percent to $2.45.

Outside of the NZX 50, Pacific Edge, which makes a non-invasive bladder cancer detection test, rose 4.9 percent to $1.72 and has soared 197 percent in the past 12 months. Today it announced a contract to sell its Cxbladder test through the nation’s four largest District Health Boards.

Kirkcaldie & Stains rose 1.5 percent to $2 after the department store owner put its Wellington Harbour City Centre building up for sale.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news