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

 

Broadband Network: Spark Launches New, Competitive Ultra Fibre Plan Line-Up

Spark is giving customers an even more compelling reason to switch to its Ultra Fibre plans from today with the introduction of new competitive pricing for the majority of its plans (details below) and Fibre Landline (voice-over-fibre technology) for ... More>>

Employment: ANZ Proposes Casualisation In Whangarei Stores

ANZ workers in Whangarei could see their incomes drop by 20 to 40 percent if the bank’s proposal to reduce the number of full-time positions goes ahead says FIRST Union national organiser Tali Williams. More>>

Finance: BNZ Develops Specialist Tāmaki Māori Banking Team

BNZ develops specialist Tāmaki Māori Banking Team to support Māori as Auckland grows More>>

Pharmaceuticals: Commerce Commission To Consider Pharmaceuticals Merger

The Commerce Commission has received an application from Pfizer Inc. seeking clearance to acquire all of the shares in Hospira Inc. More>>

Real Estate: Housing Unaffordability Issues Spread

Surging house prices in Auckland and Queenstown last month pushed home ownership even further beyond the reach of first home buyers in the two districts, according to the AMP360 Home Loan Affordability Report for March. More>>

Statistics NZ: Annual Exports To China Dip Below Australia

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said today. More>>

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news