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


MARKET CLOSE: NZ shares gain with Ebos; Trade Me falls

MARKET CLOSE: NZ shares gain on Ebos, Meridian earnings, Trade Me disappoints

By Suze Metherell

Feb. 19 (BusinessDesk) – New Zealand stock rose, as Ebos Group and Meridian Energy met profit guidance. Trade Me Group sank to an 18-month low during trade, as investors questioned the auction sites growth prospects.

The NZX 50 Index rose 19.045 points, or about 0.4 percent, to 4914.142. Within the index, 25 stocks rose, 17 fell and eight were unchanged. Turnover was $152 million.

Ebos shares rose 2.6 percent to $9.95, paring an earlier gain to $10.05 as investors digested its first-half results, which showed the impact of the strong kiwi dollar against the Australian dollar. Earnings before interest, tax, depreciation and amortisation of $96.2 million, were below the $103.6 million the company used in its prospectus, while net profit of $49.4 million beat its forecast $48.7 million.

"They restated their numbers for the currency movements and missed slightly at the EBITDA level, although they got there at the net profit level." said Matthew Goodson, managing director at Salt Funds Management.

Meridian Energy rose 0.5 percent to $1.04. Underlying net profit for the government controlled energy company was $83 million, beating its prospectus forecast by 28 percent, the company said today.

“That whole energy sector is in a holding pen until Genesis comes on the market,” said Rickey Ward, who manages about $450 million of equities for Tyndall Investment Management. “It’s the unfortunate side effect of giving a good result in a tough sector.”

The government plans to sell down its holding in Genesis Energy ahead of the elections this year.

Trade Me fell 5.4 percent to $3.83 The online auction website disappointed investors with only 2 percent growth in first-half earnings, compared to 2 percent for the same period a year earlier.

“The domestic market was expecting a poor result from Trade Me, and it delivered on that,” Ward said. “It has limited growth over the next 12 months so does it deserve to trade on a growth multiple?”

New Zealand Oil & Gas declined 0.6 percent to 78 cents. It reported static earnings today as it spends big on further exploration.

Fletcher Building climbed 1.3 percent to $9.72. The company is due to report first-half earnings tomorrow.

“People have looked through a potentially soggy result,” Ward said. “We are expecting results which would be reflective of the high kiwi against the Australian dollar, but we have had confirmation of the Australian environment definitely improving.”

Other NZX 50 companies due to report earnings tomorrow include Auckland International Airport which rose 1.5 percent to $3.64, while Port of Tauranga slipped 0.7 percent to $13.85. Nuplex Industries, which makes specialty chemicals, climbed 2.4 percent to $3.48 and Steel & Tube was unchanged at $3.10.

Sky Network Television gained 1.2 percent to $5.84 while Telecom climbed 1.7 percent to $2.43. Sky City Entertainment Group fell 0.3 percent to $3.74 and cloud-based accounting software company Xero slid 0.5 percent to $39.60.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news