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

 


MARKET CLOSE: NZ shares up; Turners Auctions beats guidance

MARKET CLOSE: NZ shares gain as Turners Auctions beats guidance, Michael Hill gains

Feb. 13 (BusinessDesk) – New Zealand stocks rose as Turners Auctions beat its earnings guidance and investors looked ahead to results from jeweller Michael Hill International and Vital Healthcare Property Trust tomorrow.

The NZX 50 Index rose 3.556 points or 0.1 percent to 4873.528. Within the index, 23 stocks rose, 22 fell and five were unchanged. Turnover was $120 million.

Used-car auction house Turners Auctions rose 13 percent to $2.65, an eight year high. Net profit rose 14 percent to $4.8 million in calendar 2013, beating its November forecast increase of 10 percent.

“Turners Auctions was the surprise of the day, delivering an unexpected great result and market reaction was positive,” said Grant Williamson, director at Hamilton Hindin Greene.

Brisbane-based Michael Hill rose 1.5 percent to $1.40. Vital Healthcare gained 0.4 percent to $1.275. Both companies are due to report earnings tomorrow. First NZ Capital analysts have forecast a 5 percent gain for Michael Hill’s net profit, and a 3 percent gain for Vital Healthcare.

SkyCity Entertainment Group was up 0.3 percent to $3.66. The casino operator delivered its results yesterday, which were down on the previous year, but not as much as the market expected, said Williamson.

Auckland International Airport declined 0.5 percent to $3.62, after the Commerce Commission reaffirmed that Christchurch International Airport is setting prices too high, reminding investors of the threat of regulation.

“Any sort of comment like the Commerce Commissions does have an impact on industry prone to regulation, and will create a bit of selling,” Williamson said.

Network provider Chorus fell 1.7 percent to $1.47. Chorus is facing regulated price cuts from December this year, unless the government pushes back on the commission’s decision.

Government-controlled energy company MightyRiverPower fell 0.8 percent to $1.975 and Contact Energy was down 0.2 percent to $5.19. The opposition Labour Party and the Greens have vowed to regulate the electricity market if they win this year’s election.

Retirement village operators were down today as investors took the opportunity to take some profit from the well-performing stock. Summerset Group Holdings sank 2.4 percent to $3.29. Ryman Healthcare slipped 1 percent to $7.60 and Metlifecare dropped 0.5 percent to $4.03.

“There’s been a bit of profit taking. Investors think the sector has had a good run and time to take some profit and look elsewhere,” Williamson said. “The outlook is still exceedingly positive, although some analyst valuations put it as a little bit stretched.”

Telecom rose 1.3 percent to $2.42. Cloud-based accounting software firm Xero gained 0.6 percent to $40.15. The nation’s largest listed company Fletcher Building was up 0.4 percent to $9.45.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:


Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news