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

 


MARKET CLOSE: NZ Shares rise as A2 reports strong earnings

MARKET CLOSE: NZ Shares rise as A2 reports strong earnings; Summerset, Freightways extend gains

By Suze Metherell

Feb. 26 (BusinessDesk) – New Zealand stocks rose as A2 Corp reported strong growth in its first-half sales, while Summerset Holdings and Freightways extended gains made on solid earnings.

The NZX 50 Index rose 5.687 points, or about 0.1 percent, to 4973.198. Within the index 30 stocks rose, 16 fell and four were unchanged. Turnover was $112 million.

Half of New Zealand’s benchmark index listed companies have reported either full-year or first-half earnings.

A2, which makes milk with added protein for health benefits, rose 2.2 percent to 95 cents. The dairy exporter reported 22 percent growth in the six months ended Dec. 31.

“A2 was expected to deliver a good result, and they all seem to be delivering pretty good results, though it’s fair to say that investors are expecting them,” Chris Timms, investment adviser at Craigs Investment Partners. “There haven’t been any massive surprises; the best I’ve seen was Summerset’s yesterday, which was a really good result.”

Summerset rose 0.9 percent to 95 cents, extending yesterday’s 3.3 percent gain. The retirement village operator doubled its annual profit to a record $34 million on record sales.

Freightways, the nation’s largest listed courier, gained 2.1 percent to $4.90, adding to a two-day rally after earnings earlier this week showed growth across its businesses.

MightyRiverPower, the partially privatised electricity company, fell 1 percent to $2.02. The company reported 3.7 percent increase in first-half earnings as it cut costs amid poor hydro conditions. Fellow partially privatised energy company Meridian rose 0.5 percent to $1.06.

The government today announced plans to sell down between 30 percent and 49 percent of its holding in Genesis Energy, listing it on the NZX in April, and marking the end of its asset sale programme over the past year. The shares will be priced at the start of the initial public offer period in March, in what is known as a front-end bookbuild.

“They’ve taken a different approach on Genesis,” Timms said, who couldn’t comment specifically on the news as Craigs is involved in Genesis’ IPO. “Whether there is a bit of people trying to look around and assess what this means for them, and where they should be placing things, it’s hard to know.”

Contact Energy rose 1.2 percent to $5.21, while lines company Vector fell 0.8 percent to $2.42.

Guinness Peat Group, which has largely finished liquidating its investment portfolio, led the day’s gainers, up 3 percent to 69 cents.

Online auction site Trade Me Group was the index’s worst performer on the day, dropping 2.7 percent to $4.03. Fletcher Building, New Zealand’s largest listed company, slipped 0.5 percent to $9.67 and cloud-based accounting software company Xero fell 1.2 percent to $40.

“Fletchers is down after having a pretty good run, and Trade Me is down after a good run, Xero as well,” Timms said. “It does look like there’s been a bit of profit-taking going on.”

Telecom gained 1.7 percent to $2.43. Auckland International Airport was unchanged at $3.725.

DNZ Property Fund fell 0.1 percent, or 1.5 cents, to $1.505 after shedding rights to its interim dividend, of 2.25 cents per share, payable on March 14.

Outside of the benchmark index, Tourism Holdings, Australia and New Zealand’s largest holiday vehicle rental company, jumped 13 percent to $1.19 after beating guidance and increasing first-half earnings 36 percent. Retail website search engine company SLI Systems fell 1.8 percent to $2.75, after it turned a net loss of $2.3 million in the first-half.

Team Talk slipped 2.3 percent to $2.13.The Wellington-based telecommunications provider lifted first-half profit 27 percent and plans to trim dividend payments from October to fund expansion into rural internet services.

NZAX-listed Chatham Rock Phosphate fell 3.5 percent to 28 cents. The company is developing a project to mine phosphate from the sea floor said it expects to list on London’s AIM after several UK investors gave its venture backing.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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