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

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news