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

 


MARKET CLOSE: NZ stocks fall as Xero’s growth falters

MARKET CLOSE: NZ stocks fall as Xero’s growth falters

By Suze Metherell

April 2 (BusinessDesk) – New Zealand shares fell for a third day, paced by Xero as investors turned away from the high growth stock after an analyst revised their forecasted subscription rate for the company. Outside the benchmark index Synlait Milk fell on weaker global dairy prices.

The NZX50 Index fell 6.211, or 0.1 percent, to 5116.308. Within the index there was an even split as 20 stocks fell, 20 rose and 10 were unchanged. Turnover was $162.2 million.

Xero fell 2.9 percent to $38 and has an average recommendation of ‘sell’ according to 3 analysts surveyed by Reuters. The cloud-based accounting software is the second largest listed company in the stock market, and has climbed 236 percent in the past year, however, in the last month the stock has declined 8.4 percent, underperforming the NZX50’s 2 percent gain.

“It is very early days in Xero’s ramp up, so you’re trying to read signals today for what may be much bigger numbers in the future, but it just looks as though they’re going to be a little shy of what some of the more bullish people had hoped for,” said Matthew Goodson who helps manage $650 million in equities at Salt Fund Management. “Xero certainly went vertical last year, as did many similar stocks in America and they have given up ground in recent days, as has Xero.”

“There’s been a slight shift away from the higher growth end in the market if you like,” particularly from bio-tech and internet companies, said Goodson.

Trade Me Group, the online auction website, fell 0.2 percent to $4.08. Pacific Edge, makers of the non-invasive bladder cancer detection test, rose 2.4 percent to $1.30, paring its decline of 19 percent in the past month.

Synalit Milk fell 1.1 percent to $3.67 after dairy product prices had the biggest drop in almost 20 months at Fonterra Cooperative Group's latest GlobalDairyTrade auction. . Units in the Fonterra Shareholders’ Fund rose 0.8 percent to $6.15. The units give investors access to Fonterra Coop’s dividend stream.

“That’s a negative for Synlait because they won’t get the benefit of buying Fonterra’s price at 70 cents below the milk price,” Goodson said.

Steel & Tube Holdings was the worst performer on the bourse, down 3 percent to $2.96. Fletcher Building, New Zealand’s biggest listed company, fell 0.2 percent to $9.46.

MightyRiverPower fell 0.9 percent to 2.17. Meridian Energy declined 1.7 percent to $1.135. Auckland lines company Vector declined 0.8 percent to $2.45 and Contact Energy slipped 0.9 percent to $5.30.

OceanaGold climbed 7.2 percent to $2.54. Telecom rose 1 percent to $2.455 and Sky Network Television rose 0.8 percent to $6.30.

Outside the NZX 50, Postie Plus Group rose 4.6 percent to 11.5 cents. The retailer has missed the cut off for providing its first-half results to the stock market operator NZX and risks a trading suspension if it doesn’t meet an April 8 deadline.

Goodman Fielder declined 17 percent to 54 cents, after Australasia's biggest food company said annual earnings will miss expectations by as much as 15 percent, prompting it to speed up its cost cutting plan and reduce staff.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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