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

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news