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

 

Employment: ANZ Proposes Casualisation In Whangarei Stores

ANZ workers in Whangarei could see their incomes drop by 20 to 40 percent if the bank’s proposal to reduce the number of full-time positions goes ahead says FIRST Union national organiser Tali Williams. More>>

Finance: BNZ Develops Specialist Tāmaki Māori Banking Team

BNZ develops specialist Tāmaki Māori Banking Team to support Māori as Auckland grows More>>

Pharmaceuticals: Commerce Commission To Consider Pharmaceuticals Merger

The Commerce Commission has received an application from Pfizer Inc. seeking clearance to acquire all of the shares in Hospira Inc. More>>

Real Estate: Housing Unaffordability Issues Spread

Surging house prices in Auckland and Queenstown last month pushed home ownership even further beyond the reach of first home buyers in the two districts, according to the AMP360 Home Loan Affordability Report for March. More>>

Statistics NZ: Annual Exports To China Dip Below Australia

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said today. More>>

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news