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

 


MARKET CLOSE: NZ stocks slide after Australian data

MARKET CLOSE: NZ stocks slide after Australian data; Fletcher, A2, SkyCity fall

By Suze Metherell

Feb. 27 (BusinessDesk) – New Zealand stocks fell as weaker capital spending data in Australia weighed on companies with interests across the Tasman including Fletcher Building, A2 Corp and SkyCity Entertainment Group. Westpac Banking Group and Australian New Zealand Banking Group also fell.

The NZX 50 Index fell 8.862 points, or about 0.2 percent, to 4964.336. Within the index, 16 stocks fell, 19 rose and 15 were unchanged. Fletcher alone made up almost a fifth of the $106 million turnover.

Australia’s S&P/ASX 200 Index slipped 0.5 percent in afternoon trade after government figures showed the biggest drop in capital spending since 2009, while Qantas Airlines posted a A$252 million loss and plans to sack 5,000 jobs. New Zealand companies with strong Australian interests were caught in the bad sentiment and sold off.

Fletcher, New Zealand’s biggest listed company, fell 2.1 percent to $9.47. A2 Corp, which counts Australia as its largest market, fell 1.1 percent to 94 cents. SkyCity Entertainment Group, which operates casinos in Darwin and Adelaide, slipped 0.3 percent to $3.89.

“If you look at some of our big decliners today they do have quite strong business operations in Australia - that’s clearly had an impact,” said Peter McIntyre, investment adviser at Craigs Investment Partners. “There’s concern over some of the operations, like Fletcher’s, with over 50 percent of income out of Australia, any changes in Australia weighs on them.”

ANZ Bank fell 1 percent to $34.38 while Westpac slipped 0.9 percent to $36.

“You only have to look at economic growth – we’re looking at plus 3.5 percent and Australia’s is just plus 2 percent,” said McIntyre. “We’re expecting a cash rate increase as well and that’s probably going to put further pressure on the New Zealand dollar upwards against the Australian dollar.”

Air New Zealand, rose 0.9 percent to $1.756 after the government controlled airline said full-year earnings will rise more than 17 percent in contrast to rival Qantas’s poor result. ASX-listed Qantas dropped 8.5 percent to A$1.162.

“Qantas slumped to quite a massive loss and is restructuring its business, while on the other side Air New Zealand seems to be a far more nimble operator and been able to produce a higher quality result,” said McIntyre.

Fonterra Shareholders’ Fund slipped 0.3 percent to $6.20. The fund which carries the rights to dividends from the dairy company fell on news that Fonterra Cooperative was boosting farmgate milk prices 35 cents to a record $8.65 per kilogram of milk solids, while leaving unchanged its forecast dividend payment.

“Every time the payout increases it puts pressure on their margins,” said McIntyre.

Clothing chain Hallenstein Glasson led today’s gainers, rising 2.7 percent to $3.10, and New Zealand’s largest listed retailer Warehouse Group rose 2 percent to $3.53. Outdoor clothing retailer Kathmandu Holdings was unchanged at $3.10, as was jewellery chain Michael Hill International at $1.35.

“There’s been some positive research notes out on both Hallenstein and Warehouse, they’ve been laggards of recent times,” said McIntyre. “I think there’s been some bargain hunters in there.”

Auckland International Airport was unchanged at $3.725, as was Sky Network Television at $6.07. Telecom rose 1.4 percent to $$2.465 while cloud-based accounting software gained 0.4 percent to $40.14.

Outside the benchmark index, Veritas Investments fell 0.7 percent to $1.35. The investment company that owns the Mad Butcher franchise chain said first-half earnings fell 6.8 percent. Delegat’s Group, which owns Oyster Bay and Barossa Valley wines, fell 1.3 percent to $3.75 after reporting a drop in UK and European sales.

Hellaby Holdings, the diversified investment company, fell 5.5 percent to $3.10 after it posted a 60 percent rise in first-half profit.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news