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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news