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

 


MARKET CLOSE: NZ shares mixed as Fletcher, Telecom fall

MARKET CLOSE: NZ shares mixed as Fletcher, Telecom fall; Chorus, Summerset gain

By Suze Metherell

Feb. 25 (BusinessDesk) – New Zealand stocks were mixed with Fletcher Building and Telecom weighing on the market as investors took the opportunity to take some profit from yesterday’s gain. Summerset Group climbed after it delivered a record annual profit.

The NZX 50 Index fell 2.134 points, or about 0.04 percent, to 4967.511. Within the index 13 stocks fell, 27 rose and 10 were unchanged. Turnover was $123.2 million.

Fletcher, New Zealand’s largest listed company, fell 1.5 percent to $9.72, from a near three month high of $9.87. Last week Fletcher reported first-half earnings were held back by the strong currency, though some investors later became upbeat about its outlook for Australia.

“A mixed bag on the local market, with Fletcher Building being the main culprit that has really weighed on the index,” said Grant Williamson, broker at Hamilton Hindin Greene. “Fletcher had rallied relatively strongly the two days previous, so we’ve just started to see a few investors take profit on that stock.”

Telecom, the nation’s biggest telecommunications company, fell 2.5 percent to $2.39, yesterday it traded as high as $2.455, or a near nine month high. On Friday, Telecom announced plans to rebrand and launch a new internet-based television service from the middle of the year.

“Two of our largest listed companies came under a little bit of selling pressure today,” Williamson said.

Summerset rose 3.3 percent to $3.44 after it doubled its annual profit to a record $34 million as sales in its retirement villages reached an all-time high.

Chorus rose 4.9 percent to $1.49 leading the day’s gainers. Yesterday the telecommunication provider commissioned to build the government’s ultra-fast broadband network reported a 7.1 percent decline in first-half profit and won’t pay an interim dividend as it prepares for regulated price cuts on its copper wires in December.

“We are starting to see a few bargain hunters come into the Chorus market, ahead of what’s going to be quite a busy year for them with the regulators and other things which are going to come out on that company,” said Williamson. “I think investors are probably saying the worst is probably over for the company and surely there’s got to be some good news down the track.”

Freightways, New Zealand’s largest listed courier company, climbed 2.1 percent to $4.80, a seven year high after touching an intraday record of $5. The company reported 3 percent growth in its first-half earnings yesterday.

“It’s a stock that’s starting to catch the eye of investors, although it’s not producing spectacular growth it is very steady growth and investors are quite liking that,” Williamson said.

Heartland New Zealand, the bank formed from the merger of the Canterbury and Southern Cross building societies and Marac Finance, rose 1.1 percent to 91 cents. Guinness Peat Group, which owns industrial thread maker Coats, was unchanged at 67 cents. Both companies reported earnings in line with expectations.

Online auction site Trade Me Group rose 2.7 percent to $4.14. The company revised its earnings outlook down 4 percent after a disappointing first-half results.

Auckland International Airport fell 0.3 percent to $3.725. Casino operator SkyCity Entertainment Group slipped 1 percent to $3.87, and Sky Network Television rose 0.7 percent to $6.12. Cloud-based accounting software company Xero rose 1.4 percent to $40.50.

Outside of the benchmark index PGG Wrightson, the rural services company controlled by China’s Agria Corp, gained 6 percent to 44 cents after reported a 22 percent boost in profit in its first-half.

Bathurst Resources plunged 38 percent to 10 cents. The coal miner announced it is making 29 staff redundant as it hunkers down to ride out the lowest world prices for coking coal in the last nine years and signaled another delay in its Denniston Plateau open-cut mine.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news