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

 


MARKET CLOSE: NZ shares as poll weighs on power companies

MARKET CLOSE NZ shares as power companies fall amid political uncertainty

By Suze Metherell

May 8 (BusinessDesk) – New Zealand shares fell after a political poll showed dwindling support for the incumbent National-led administration, and weighing on power companies exposed to regulatory risk under a change of government. Contact Energy lead the benchmark index lower, as MightyRiverPower, Meridian Energy, and Genesis Energy paced the decline.

The NZX 50 Index fell 27.716 points, or 0.5 percent, to 5161.41. Within the index, 23 stocks fell, 18 rose and nine were unchanged. Turnover was $128.2 million.

Shares of power companies declined after a Roy Morgan political poll showed a Labour-Green coalition could win government in September’s general election. The two opposition parties plan to re-regulate the energy market in a bid to push down retail prices, a policy which has dampened investors’ interest in the government’s partial privatisation of state owned energy companies, MRP, Meridian and Genesis.

Contact dropped 3.5 percent to $5.50. Government-controlled MRP fell 1.8 percent to $2.24 and Meridian slid 3.3 percent to $1.16. Outside the benchmark index, Genesis slipped 1.4 percent to $1.82.

“Any uncertainty in that political area will be seen to be a negative – particularly the energy sector which is a bit of a political hot potato at the moment,” said Michael Milne, an investment advisor at Craigs Investment Partners. “Those energy stocks had run up a wee bit on the back of National polling and that latest poll was a wee bit weaker so we have seen a bit of a sell off.”

TrustPower, the energy company majority-owned by Infratil, rose 1 percent to $7.02 ahead of reporting annual earnings tomorrow. Infratil, which reports annual earnings next week, fell 0.9 percent to $2.27.

Z Energy, the transport fuel refiner, fell 1.3 percent to $3.83 after boosting underlying earnings 12 percent to $219 million as it widened fuel margins at the expense of market share.

“The headline numbers looked pretty reasonable and their margins looked pretty good,” Milne said. “One of the questions that’s hung over the business is they’re losing a bit of market share.”

Warehouse, New Zealand’s largest listed retailer, was unchanged at $3.38 after the red sheds company said sales rose 8.6 percent in its third quarter.

Brisbane-based jeweller Michael Hill International declined 2.3 percent to $1.30. Kathmandu Holdings, the outdoor goods retailer, fell 3.5 percent to $3.86. Trade Me Group, the online auction site, slipped 1.3 percent to $3.95.

Fletcher Building, New Zealand’s largest listed company, fell 0.4 percent to $9.26. A Craigs’ report this week downgraded its recommendation on the stock to a ‘hold’ from a ‘buy’ on a slower than expected Christchurch rebuild.

Xero, the cloud-based accounting software, fell 0.3 percent to $30.25. Telecom, New Zealand’s largest telecommunications provider, slipped 0.2 percent to $2.665. Retirement village operator, Ryman Healthcare, dropped 1.1 percent to $8.80.

Diligent Board Member Services lead gainers, up 3.3 percent to $4.41. Sky City Entertainment Group advanced 3.3 percent to $4.10 and Mainfreight rose 1.5 percent to a record $13.80.

Guinness Peat Group was unchanged at 67.5 cents after its UK threadmaker unit, Coats, said first quarter sales rose 2 percent.

Argosy Property was unchanged at 94.5 cents after the property investor sold an underperforming commercial building in Auckland for $10.4 million.

Outside the benchmark index, Mercer Group, the stainless steel manufacturer, was unchanged at 17 cents. The company slashed its full-year forecast earnings before interest tax and amortisation in half after sales were slower than expected.

Rakon dropped 4.6 percent to 21 cents after the navigation components maker said it would post a bigger annual loss than expected on asset writedowns and depreciation.

APN News & Media was unchanged at 73 cents after the Australian media group said group earnings were lagging 2013 on flat advertising spending. The dual-listed stock was down 11 percent to 60.2 Australian cents in afternoon trading on the ASX.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>


Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news