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

 


MARKET CLOSE: NZ shares gain on Fletcher’s Oz outlook

MARKET CLOSE: NZ shares gain on Fletcher’s Oz outlook

By Suze Metherell

Feb. 21 (BusinessDesk) – New Zealand stocks rose, paced by Fletcher Building whose first-half result yesterday showed potential for growth in Australia. The market responded positively to Vector’s earnings which showed growth in its technology sector.

The NZX 50 Index rose 17.813 points, or about 0.4 percent, to 4927.640. Within the index 31 stocks rose, 12 fell and seven were unchanged. Turnover was $151.4 million.

Fletcher’s shares rose 2.2 percent to $9.75. New Zealand’s biggest listed company reported half-year earnings yesterday which showed signs of growth in its Australian market, which makes up approximately half its business.

“For the overall movement of the index, the big mover today has been Fletcher Building,” said James Smalley a director at Hamilton Hindin Greene. “Investors are looking past current earnings, which might make the stock look a little bit on the expensive side, and are buying in anticipation of growth in their Australian business.

Vector gained 1.7 percent to $2.37. The Auckland electricity, gas and telecommunications network said net profit fell 11 percent in the six months ended Dec. 31. The lines provider has been through a number of regulated price adjustments affirmed its full-year guidance.

“The result wasn’t as bad as investors were fearing, given they had a number of regulated price cuts that were going to flow through to their earnings,” Smalley said. “Its technology unit which put in the smart meters and the like had a pretty good result.”

Telecom fell 1.7 percent to $2.375. The country’s biggest telecommunication provider today announced it will rebrand itself as Spark, and launch an internet television service to rival Sky Network Television. Its first-half earnings were flat. Sky TV slipped 2.4 percent to $5.75, and was the day’s worst performer.

“Telecom is the one weighing on the market today,” Smalley said. “There’s a little bit of disappointment with the bottom line and a little bit of uncertainty to do with this major rebrand they’re going to go through.”

OceanaGold rose 3.3 percent to $2.84. The Melbourne-based mining company reported a boost in gold production, but flat earnings as it wrote down its New Zealand mines.

NZX was unchanged at $1.27. The New Zealand’s stock operator reported a 22 percent lift in first-half earnings.

Nuplex Industries fell 1.5 percent to $3.3, extending yesterday’s decline after the speciality chemical makers earnings disappointed investors.

Auckland International Airport rose 0.3 percent to $3.70. Port of Tauranga lifted 1.5 percent to $14. Both companies reported growth in first-half earnings yesterday.

“It’s a reporting season where investors had quite low expectations, and although a number of companies haven’t exactly knocked the lights out, they’ve come out with ok results, and due to investors low expectations that’s why we’ve seen these stocks move up post their results,” Smalley said.

Michael Hill International climbed 7 percent to $1.38, leading gainers. Online auction site Trade Me Group rose 0.8 percent to $4.05. Outdoor clothing retailer Kathmandu rose 2.5 percent to $3.25. New Zealand’s biggest listed retailer Warehouse Group rose 0.3 percent to $3.39, and clothing chain Hallenstein Glasson Holdings fell 0.6 percent to $3.09.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news