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

 


MARKET CLOSE: NZ shares fall, led by NZOG on abandoned well

MARKET CLOSE: NZ shares fall, led by NZOG on abandoned well

By Paul McBeth

Jul. 8 (BusinessDesk) - New Zealand shares fell, led by New Zealand Oil & Gas after it pulled the pin on its latest exploratory well, and as investors prepare for the pointy end of a raft of new listings and the upcoming earnings season.

The NZX 50 Index fell 20.285 points, or 0.4 percent, to 5166.075. Within the index, 28 stocks fell, 12 gained, and 10 were unchanged. Turnover was $136.6 million.

Investors have been busy with the pipeline of initial public offers, with Metro Performance Glass filing its prospectus yesterday, and are fairly cautious ahead of next month's earnings season, which will be a barometer on whether stocks are fairly priced, according to Rickey Ward, New Zealand equity manager at JBWere.

"We've got everyone feeling a little uncomfortable with trading at a premium to historic multiples," Ward said. "Everyone wants reporting season to justify the current multiples."

Leading the benchmark index lower, NZOG fell 2.5 percent to 79 cents after the oil and gas explorer said operations on the Oi-2 well off the Taranaki coast was abandoned. The Wellington-based company had a 19 percent stake in the Oi well. Dual-listed Pan Pacific Petroleum, a partner in Oi, slumped 26 percent to 5.9 cents on the NZX.

"I can't recall the last time they had really good success outside of Kupe," Ward said. "You almost wonder whether they should stop exploring and pay distributions."

Pacing the decline, national carrier Air New Zealand fell 2.1 percent to $2.135, and accounting software developer Xero dropped 1.9 percent to $26.01.

Retirement village operator Summerset Group Holdings fell 1.8 percent to $3.31 after reporting slowing second-quarter unit sales earlier this week. Rivals Metlifecare dropped 1.6 percent to $4.45 and Ryman Healthcare slipped 0.6 percent to $8.62.

Steel & Tube Holdings, the building products manufacturer, led gainers, up 2.3 percent to $3.07, while specialty chemicals maker Nuplex Industries gained 1.7 percent to $3.05.

Property For Industry was unchanged at $1.335 after the Auckland-based industrial property investor said it will spend $15.3 million on a Wellington property with a 10-year lease at a yield of 7.6 percent. Argosy Property was unchanged at 99 cents as was DNZ Property Fund at $1.635, Goodman Property Trust at $1.085 and Kiwi Income Property Trust at $1.175. Precinct Properties New Zealand declined 0.5 percent to $1.075.

Outside the benchmark index, Michael Hill International climbed 5.7 percent to $1.30 after the Brisbane-based jeweller said sales increased sales 9.7 percent last year, the fastest pace in three years, to A$482.8 million in the 12 months ended June 30. Same-store sales rose 5 percent to A$433.9 million.

Would-be coal miner Bathurst Resources dropped 1.9 percent to 5.1 cents after it struggled to attract much interest in a rights issue at 6.5 cents per share. Of the 41.08 million shares available, just 2.15 million were subscribed to.

Energy Mad was unchanged at 25 cents. The energy efficient lightbulb maker has missed out on gross tax losses of $7.7 million after a long-standing offshore shareholder sold their stake, causing the stock to fall below the 49 percent minimum continuity shareholding threshold required to claim the tax loss.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news