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

 


MARKET CLOSE: NZ shares rise; investors await earnings

MARKET CLOSE: NZ shares rise; investors await August earnings season

By Paul McBeth

July 10 (BusinessDesk) - New Zealand shares rose, following stocks across Asia higher, as investors await next month's earnings season for clearer steer on where the market will head next. Xero led gainers.

The NZX 50 Index increased 5.27 points, or 0.1 percent, to 5128.013. Within the index, 23 stocks rose, 20 fell, and seven were unchanged. Turnover was $112.4 million.

The local market followed stocks across Asia higher as New Zealand investors take a cautious tone ahead of next month's earnings season, which will help them assess whether companies are trading at appropriate valuations.

"I don't expect the market moving too much either way until we get through reporting season," said Grant Williamson, a director at Hamilton Hindin Greene. "Investors want to know if the sort of increases in share prices over the last six months are still warranted."

Growth-orientated stocks led the benchmark index higher, with accounting software developer Xero up 2.6 percent to $25.65 and biotech company Pacific Edge also gaining 2.6 percent to 79 cents.

Fletcher Building, the country's biggest listed company, rose 0.5 percent to $8.90, and Telecom Corp gained 0.6 percent to $2.69.

Hamilton Hindin Greene's Williamson said investors are still seeking shares that pay regular dividends, with property stocks performing well today.

Goodman Property Trust gained 0.9 percent to $1.085, Precinct Properties New Zealand rose 0.5 percent to $1.09, and Argosy Property gained 1 percent to 99 cents.

Units in Kiwi Income Property Trust fell 0.4 percent to $1.175 after the property investor said a seven-year $125 million bond issue had been oversubscribed.

Power company Meridian Energy was the biggest decliner on the benchmark index, down 2 percent to $1.235. Genesis Energy fell 0.8 percent to $1.80.

MightyRiverPower, the first of the three government-controlled power companies to be partially privatised, rose 0.2 percent to $2.265 after it announced the appointment of digital marketing expert Andy Lark to its board.

Retailers were mixed. The sector is under increased pressure to keep prices cheap as shoppers are lured by bargains from international online retailers, while unseasonably warm weather in both New Zealand and across the Tasman have further impacted winter apparel sales.

Kathmandu Holdings, the outdoor goods retailer, rose 0.6 percent to $3.19. Warehouse Group, New Zealand's largest listed retailer, fell 1.6 percent to $3.09. Trade Me Group, the online auction site, was unchanged at $3.53.

Outside the benchmark index, Brisbane-based jeweller Michael Hill International fell 0.8 percent to $1.32 and clothing chain Hallenstein Glasson Holdings rose 1 percent to $3.10.

"Conditions for all clothing retailers have been very difficult, particularly in Australia where the weather on the east coast has been warmer than normal and consumer confidence has taken a hit there with the economy being a little more difficult than it normally is in Australia," said Matthew Goodson, who manages $650 million of investment for Salt Funds Management.

Children's clothing chain Pumpkin Patch slid 7.3 percent to a record low 38 cents. The company has been looking to revive its performance, announcing a strategic review including a close look at its IT infrastructure, in a bid to make its distribution and supply chain management more efficient, and the size of its store footprint in a store-by-store review.

"They're moving through significant strategic change," said Salt Funds' Goodson, which holds a 5.6 percent stake in the company. "It has weaknesses in that it certainly appears to have over-expanded its retail footprint in Australasia and their design of supply chain functions started to not be what they should be."

Energy Mad pared yesterday's decline, rising 11 percent to 21 cents. Earlier this week the energy efficient light bulb maker and marketer said it had lost tax-loss assets after a long-standing shareholder sold their stake.

Millennium & Copthorne Hotels New Zealand was unchanged at 68 cents after it said it will buy the remaining 30 percent stake in its Quantum joint venture for $14.25 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news