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

 


MARKET CLOSE: NZ shares fall as earnings dominate

MARKET CLOSE: NZ shares fall in session dominated by earnings; Fletcher, Nuplex disappoint

By Suze Metherell

Feb. 20 (BusinessDesk) – New Zealand stocks fell after Fletcher Building and Nuplex Industries posted earnings disappointed investors. Trade Me Group rebounded after dropping in the wake of its results yesterday.

The NZX 50 Index fell 4.315 points, or about 0.1 percent, to 4909.827. Within the index, 19 stocks fell, 20 rose and 11 were unchanged. Turnover was $144 million.

In one of the biggest days of earnings season six NZX 50 listed companies reported.

New Zealand’s biggest listed company Fletcher fell 1.9 percent to $9.54, paring an earlier decline to as low as $9.39. Nuplex, the specialty chemicals maker, sank 2.9 percent to $3.38. Both companies reported first-half earnings constrained by the high kiwi against the Australian dollar.

“Because of the weight of Fletcher in the New Zealand index it’s leading the market lower as they count for about 10 points of the index,” said Bryon Burke head of equities Craigs Investment Partners. “Again, they’re companies which had issues with the New Zealand dollar.”

“The Nuplex result was slightly below our forecast, but the outlook is positive, except in Australia,” he said.

Trade Me gained about 5 percent to $4.02, leading the day’s gainers. The online auction site slid to an 18-month low yesterday after its first-half earnings showed subdued growth.

“There was plenty of selling around yesterday and it’s sometimes the case that with some results there can be a kneejerk reaction to announcements and obviously people have looked at it closer and said well actually it’s not so bad,” he said.

Port of Tauranga slipped 0.4 percent to $13.79. New Zealand’s largest port operator reported moderate growth in its first-half, but a drop in container volumes as shippers returned to rival Ports of Auckland which lost ground during its 2012 industrial action.

“Their clients in the shipping companies probably quite like the competitiveness of the two in driving prices as cheap as they can,” Burke said. “Port of Tauranga is pretty solid, it was in line with market expectations and it doesn’t have to worry about the dollar too much.”

Skellerup Holdings climbed 5 percent to $1.79. The industrial rubber goods maker lifted first-half earnings 14 percent and hiked its expectations for annual profit.

Auckland International Airport rose 1.4 percent to $3.69. The nation’s busiest gateway reported a 12 percent boost in first half earnings. Steel & Tube, which reported a 10 percent first-half earnings boost, rose 3.2 percent to $3.20.

“With so many results coming at once it’s hard for both investors and analysts to go through them with a fine tooth comb and adjust portfolios accordingly - we’d expect to see more stock movements in the market in the next few days,” Burke said.

Telecom fell 0.6 percent to $2.415. Casino operator SkyCity Entertainment Group climbed 1.3 percent to $3.79 and Sky Network Television lifted 0.9 percent to $5.89. Xero gained about 1 percent to $39.98.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news