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

 


GeoOp slides to record-low as investors cautious on growth

GeoOp slides to record-low as investors cautious on growth stocks

By Suze Metherell

June 27 (BusinessDesk) - Shares in GeoOp, whose software allows mobile businesses such as builders to manage their workforce, dropped to its lowest price since listing last year, as investors shunned growth stocks in a shift to more cautious sentiment.

The NZ Alternative Index listed stock fell 7.8 percent to $1.06, before all trading halted on the NZX due to a technical glitch with the stock market operator, well below its debut price of $2.40 in October last year and have plunged 76 percent from its high of $4.49 in November. The company raised $10 million at $1 a share in a private offer before listing, which it said at the time was more than three times oversubscribed.

"It's simply a reflection of a bit of caution creeping into that whole space with those tech companies," said Mark Lister, head of private wealth research at Craigs Investment Partners. "Those sorts of stocks can power ahead pretty aggressively when things are going well and when people are really upbeat on their prospects, but because of their volatile nature and because they don't really have any earnings or profit behind them, when things turn cautious they fall harder as well."

Growing geopolitical risk including increased conflict in Iraq, rising interest rates, and global markets trading at all-time highs had investors more cautious across the world, while upcoming listings of tech-based companies had investors pulling cash from the stocks to fund new investments, Lister said.

Xero, the cloud-based accounting software firm, rose 0.4 percent to $26 but has slipped 43 percent from its March high of $45.99. Pacific Edge, the Dunedin-based biotech company, was unchanged at 81 cents, more than half of its February high of $1.76. Diligent Board Member Services slipped 0.3 percent $3.98, and is 43 percent below its June 2013 high of $7.06.

"All of those stocks which are really exciting growth stories, but at the moment aren't very profitable, are the ones that have been star performers over the last couple of years, and have had a pull back lately," Lister said. A more cautious tone was in the market after what had been a turbo-charged first-half, which saw the NZX 50 Index reach all-time highs, he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tubes: Tasman Global Access Cable Goes Live

Spark, Vodafone and Telstra have today announced the Tasman Global Access (TGA) cable is officially in service and ready to carry vast quantities of Internet traffic between New Zealand and the world. More>>

ALSO:

Theresa Does: Brexit Letter Sees NZD Touch Week-High Vs GBP On Brexit

The New Zealand dollar rose to a week-high against the British pound and euro after UK Prime Minister Theresa May officially triggered Britain's exit from the European Union. More>>

ALSO:

Statistics: Business Research And Development Up 29 Percent

Computer services and machinery manufacturing firms led the way in an almost 30 percent lift in business spending on research and development (R&D) in 2016, Stats NZ said today. Businesses spent $1.6 billion on R&D in 2016, up $356 million (29 percent) from 2014. More>>

ALSO:

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news