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

 

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