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

 


MARKET CLOSE: NZ stocks fall as investors mull valuations

MARKET CLOSE: NZ stocks fall as investors mull valuations; Telecom drops from month high

By Suze Metherell

July 15 (BusinessDesk) - New Zealand shares fell as investors waited on full-year earnings to confirm high valuations of stocks. Telecom paced the decline, falling from a month high. Warehouse Group and Kathmandu Holdings fell after figures showed weaker retail sales in June.

The NZX 50 Index fell 12.469 points, or 0.2 percent, to 5115.396. Within the index, 29 stocks fell, 12 rose and nine were unchanged. Turnover was $90.2 million.

The benchmark index reached all-time records in the first-half of 2014 and has advanced 8 percent this year, leading some investors to question whether the market was fully priced and to look for validation in the high stock prices ahead of earnings next month.

"The earning season is right there - we've come through the confession season relatively unscathed but people will be looking for earnings continuing to strengthen so there is a bit of caution about that," said Shane Solly, portfolio manager and research analyst at Harbour Asset Management. "All equity markets have had a very good run and they're slightly above the historical averages but having said that the environment is gradually improving so investors need to patient with that."

Telecom fell 0.7 percent to $2.73 after touching a month high yesterday.

Paymark, which processes more than three quarters of the country's Eftpos purchases, recorded a "noticeable decline in spending" in June compared to a year earlier, as spending at department stores fell 4.0 percent, appliance retailers dropped 6.5 percent and clothing shops slipped 5.3 percent. Listed apparel retailers have already flagged weaker sales, as an unusually long summer and mild start to winter have crimped sales here and on Australia's east coast.

Warehouse Group dropped 1.3 percent to $3.07. Last month New Zealand's largest listed retailer cut its forecast full-year profit to $59 million to $62 million, down from $73.7 million last year saying the warmer weather had squeezed its margins. Kathmandu Holdings fell 0.6 percent to $3.30. The outdoor good retailer has also flagged weaker sales ahead of reporting full-year earnings in September. Trade Me Group, the online auction site, declined 1.1 percent to $3.51.

"We are seeing a cooling of consumer activity," Solly said. "In terms of the impact on the retailers' efforts, it's telling us the rate of growth is not as high as it was."

Outside the benchmark index, clothing chain Hallenstein Glasson fell 1.6 percent to $3.05. Childrenswear retailer Pumpkin Patch was unchanged at 38 cents, and has declined 57 percent this year.

Fletcher Building, the country's biggest listed company, fell 0.1 percent to $8.87.

Z Energy fell 0.5 percent to $3.82. The service station chain said margins on its petrol and diesel have increased in recent months as fuel retailers recoup costs of topping up payments to the Marsden Point oil refinery.

Dual-listed lender Westpac Banking Corp led the benchmark index lower, dropping 2.8 percent to $35.40.

Air New Zealand was the best NZX 50 performer, gaining 3.5 percent to $2.07 and snapping six days of decline.

Goodman Property Trust, New Zealand's largest listed property investor by market cap, fell 1.4 percent to $1.07. Property For Industry slipped 0.4 percent to $1.34. DNZ Property Fund dropped 0.3 percent to $1.635.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

The Future: Thirty Year Infrastructure Plan Released

The Thirty Year New Zealand Infrastructure Plan 2015 sets out New Zealand’s response to the infrastructure challenges we will face over the next three decades, Finance Minister Bill English says. More>>

ALSO:

Shopping: Online GST Discussion Document

GST: Cross-border services, intangibles and goods contains proposals to require overseas suppliers to register and return GST when they sell services (including online products such as e-books, music and videos) to New Zealand consumers. It also outlines the way forward for improving the collection of GST on all goods, including low-value imported goods. More>>

ALSO:

Keith Rankin: Auckland Slowdown?

Has the Auckland housing market turned? I went to a neighbourhood auction yesterday. Solid large 1950s' house on 1,000 square metres of land, sunny section, view over city from front of house, handy to train and to the expanding New Lynn retail and commercial hub. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news