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

 


MARKET CLOSE NZ shares fall as valuations questioned

MARKET CLOSE NZ shares fall as valuations questioned; Fletcher, Telecom, Ryman drop

By Suze Metherell

May 20 (BusinessDesk) – New Zealand shares fell on concern the NZX 50 Index’s 9 percent gain this year has left the local bourse fully valued relative to the earnings outlook. Ryman Healthcare, Telecom and Fletcher Building paced the decline.

The NZX 50 Index fell 32.889 points, or 0.6 percent, to 5134.891. Within the index, 26 stocks fell, 18 rose and four were unchanged. Turnover was $135.2 million.

Ryman declined 3 percent to $8.44. The retirement village operator has gained 32 percent over the past year, outperforming the benchmark index’s 11 percent gain. Telecom, the bourse’s second largest company by market value, slipped 1.5 percent to $2.69, having gained 16 percent year-to-date. Fletcher Building, New Zealand’s largest listed company, dropped 1.1 percent to a near three month low of $9.00 and has risen 8.3 percent in the past year.

“The market is trading at extended multiples compared to what we are used to,” said David Price, a broker at Forsyth Barr. “People are not in a mad rush to buy stocks, given a lot of the leaders look like being fully priced.”

Pacific Edge, the Dunedin biotech company, dropped 3.7 percent to $1.03. Xero, the cloud-based accounting software company, fell 0.3 percent to $32.30.

Growth stocks outside the NZX 50 dropped. SLI Systems, the makers of retail website search engines, fell 1.1 percent to $1.83. Wynyard Group, which makes security software, declined 1.4 percent to $2.16.

Trade Me Group, the online auction site, led the index lower, falling 3.8 percent to a two-year low of $3.51.

Diligent Board Member Services, the governance app maker, declined 1.8 percent to $4.42.

Kiwi Income Property Trust rose 0.4 percent to $1.16 after the property investor reported a 7.8 percent decline in annual profit as the cost of exiting a management contract with Commonwealth Bank Australia offset valuation and rental income gains. Distributable income rose 25 percent to $76.3 million.

Fisher & Paykel Healthcare fell 1.9 percent to $4.22 ahead of the breathing apparatus manufacturer reporting its annual earnings this week.

Air New Zealand rose 1.7 percent to $2.13 after the national carrier announced it had expanded its marketing relationship with Tourism New Zealand by $20 million with a particular focus on South East Asia. Air NZ is seeking regulatory approval to code share with Singapore Airlines.

Auckland International Airport fell 0.5 percent to $3.975.

OceanaGold, the Melbourne-based gold miner, was the best performer on the day, advancing 2.1 percent to $2.90.

MightyRiverPower fell 0.4 percent to $2.24. Meridian Energy advanced 0.8 percent to $1.22. Contact Energy rose 0.6 percent to $5.50 and Vector, the Auckland lines company, gained 1.2 percent to $2.53.

Outside the benchmark index, Genesis Energy fell 0.5 percent to $1.845.

GuocoLeisure, the diversified investment company once known as Brierley Investments, rose 1.1 percent to 90 cents. In a long heralded move the company announced it will delist from the NZX on June 24, meaning its dwindling New Zealand shareholder base will have to use the Singapore Exchange in future.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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