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

 


MARKET CLOSE: NZ stocks fall, paced by Xero, Warehouse

MARKET CLOSE: NZ stocks fall, paced by Xero, Warehouse

By Suze Metherell

June 23 (BusinessDesk) - New Zealand stocks fell as investors sold shares to raise cash ahead of several new listings and insitutions squared their books ahead of the financial year's end on June 30. Xero fell to an eight-month low as investors sought to secure tax losses ahead of the end of the Australian financial year. Warehouse Group extended its losses after an earnings downgrade last week.

The NZX 50 Index fell 18.868 points, or 0.4 percent, to a month low of 5126.164. Within the index, 14 shares fell, 22 rose and 14 were unchanged. Turnover was $132.3 million.

Serko, the online business travel booking company, is due to debut on the NZX tomorrow morning, raising some $17 million as it sells 15.5 million of new shares at $1.10 apiece, and a further 4.5 million existing shares worth $5 million will be sold into the offer. The Auckland-based company closed its public pool early and said those investors may receive fewer than the number of shares requested because of strong demand. Gentrack, which develops utilities and airports software, will list the following day on Wednesday in a $99.1 million initial public offer, selling shares at $2.40 apiece.

"Now there is a reasonable line up of IPOs coming to the market, we could be seeing a continuation of people taking money out of the market to invest in these new IPOs," said James Smalley, a director at Hamilton Hindin Greene.

Other companies set to list on the NZX include, Hirepool on July 11 and Scales Corp on July 26, while IkeGPS released its prospectus today.

Xero, the cloud-based accounting software firm, dropped 7.3 percent to $25.90 and has declined 20 percent year to date, after more than trebling its share price in 2013. Some Australian institutional investors are sitting on a loss from their investment in Xero and would want to sell the shares within 12 months of their purchase so they could claim tax losses at the end of their financial year, Smalley said.

Pacific Edge, the Dunedin-based biotech company, fell 4.7 percent to 81 cents, and has declined 39 percent since the start of this year. Diligent Board Member Services, the governance app maker, declined 3.4 percent to $4.25 and has slipped 39 percent in the past year.

"It does seem to be those momentum play of seven, eight, nine months ago are the ones that are really seeing a bit of sell off, particularly in the last week or so, and I do wonder if it is a bit of tax-loss related selling," Smalley said.

OceanaGold led the benchmark index lower, falling 9.3 percent to $3.40.

Warehouse Group, New Zealand's largest listed retailer, slipped 1 percent to a 17-month low $3.03. Last Friday the retailer said it expects adjusted full-year profit of $59 million to $62 million, down from its March forecast for $67 million to $71 million, and lower than last year's $73.7 million.

Kathmandu Holdings, the outdoor goods retailer, was the best performer on the day, up 4.4 percent to $3.56.

"Kathmandu and Briscoe on the market here have been stand-out retailers, and the results that have disappointed the market, in particular Warehouse and Hallentstein Glasson, does show you there is money to be made in retail, but you've got to be really on top of your game," Smalley said.

Outside the benchmark index, clothing chain Hallenstein fell 3.9 percent to $3.00 while Briscoe, the sporting goods and homeware retailer, rose 1.2 percent to $2.58.

Telecom Corp, New Zealand's largest telecommunications provider, fell 0.6 percent to $2.665. Fletcher Building, the country's largest listed company, was unchanged at $8.82.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news