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

 


MARKET CLOSE: NZ stocks fall as investors mull IPOs

MARKET CLOSE: NZ stocks fall as investors mull IPOs; Infratil, Fletcher, Telecom drop

By Suze Metherell

May. 27 (BusinessDesk) - New Zealand shares fell as investors held back cash for upcoming listings. Infratil led the market lower as it shed rights to its full-year dividend. Air New Zealand, Trade Me Group and Telecom paced the decline.

The benchmark index fell 7.834 points, or 0.2 percent, to 5145.85. Within the index, 23 shares fell, 18 rose and nine were unchanged. Turnover was thin for a second day at $82 million as Wall Street and UK markets were closed overnight for national holidays.

Investors mulled two initial public offer documents released yesterday. Gentrack, the utility and airport software company, said it will use cash raised in its IPO to become debt free and buy shares from the existing owners. It may

look at acquisitions of up to $20 million to add compatible software or enter new markets. Serko, the online business travel booking company, said it was seeking up to $22 million in its IPO to fund growth aspirations across the Asia Pacific region.

"The market's valuation is towards the higher end of its current pricing, so the market will look at new opportunities. There is activity, but maybe activity is a little more focused off than on market at this time," said Nigel Scott, a director at Craigs Investment Partners. "There are several IPOs coming up in the next month or so. Most portfolios are pretty well set, so they're awaiting these new opportunities to see if they'll put additional cash towards new issues."

Infratil, the infrastructure investor, fell 2.4 percent, or 6 cents, to $2.44 after it shed rights to its final 7 cents dividend.

Air New Zealand fell 1.8 percent to $2.16. Trade Me Group dropped 1.4 percent to $3.58 and Telecom declined 0.9 percent to $2.645. Fletcher Building, New Zealand's largest listed company, slipped 0.8 percent to $9.13.

MightyRiverPower fell 0.7 percent to $2.235. The government-controlled energy generator and retailer said it was mulling a $250 million unsecured subordinated capital bonds offer, which it would use to repay bank debt and extend its funding profile.

Pacific Edge fell 1 percent to 97 cents ahead of the security software company releasing its full-year earnings tomorrow.

Outside the benchmark index, Green Cross Healthcare rose 1.5 percent to $1.35, after the healthcare provider formerly known as PharmacyBrands said it boosted annual profit 14 percent to $18.8 million, as its new pharmacy and medical acquisitions came on stream.

Moa Group fell 11 percent to 55 cents after the boutique beer maker posted a wider full-year loss of $5.8 million and said major shareholders Pioneer Capital and the Business Bakery have committed to providing enough financial support to allow the company to keep operating for at least the year ahead.

Tower fell 0.6 percent to $1.70 after the general insurer reported a 70 percent slide in first-half earnings to $13.1 million, reflecting gains from asset sales a year earlier that weren't repeated.

Kirkcaldie & Stains was unchanged at $2.00. The Wellington department store has entered into separate conditional sale and purchase agreements for the sale of the two buildings comprising its Harbour City Centre.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

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>>

ALSO:

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:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news