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

 


MARKET CLOSE: NZ stocks fall amid investor uncertainty

MARKET CLOSE: NZ stocks fall on earnings, election uncertainty; Contact, Meridian drop

By Suze Metherell

July 16 (BusinessDesk) - New Zealand stocks edged lower as uncertainty around stock valuations ahead of reporting season and the outcome of September's general election weighed on investors. Contact Energy, Meridian Energy and Vector fell. Port of Tauranga gained on a deal with shipping giant Maersk.

The NZX 50 Index fell 1.153 points, or 0.02 percent, to 5114.243. Within the index, 22 stocks fell, 18 rose and 10 were unchanged. Turnover was $119.3 million.

Investors are mulling the 8 percent gain the benchmark index has clocked up this year, as they wait for companies to report earnings next month to qualify the high valuations of stocks. The lead up to the election has traders weighing the likelihood of the incumbent National-led government returning for a third term. Opposition parties have promised to restructure New Zealand's energy market, creating a central buying agency to push down retail energy prices which has weighed on the government's partial privatisation of the power companies.

Energy stocks were mixed. Contact fell 1.8 percent to $5.35. Meridian declined 0.8 percent to $1.25. MightyRiverPower was unchanged at $2.265 and Genesis Energy, the last of the government's partially privatisated power companies to list, rose 0.6 percent to $1.81. TrustPower rose 2.1 percent to $7.29. Vector, the Auckland lines company, slipped 0.8 percent to $2.52.

"Investors are really looking ahead to reporting season but almost the dark cloud of uncertainty behind it, is what is going to happen in September at the election?" said James Smalley, director at Hamilton Hindin Greene. "We do have the uncertainty of the election coming up in September that will perhaps overshadow the entire reporting season, particularly energy stocks which are the most directly affected."

Port of Tauranga rose 2.7 percent to $15.50. The country's busiest exporter announced global shipping line Maersk will rotates its Southern Star service through the port, adding 70,000 containers to cross the wharves every year.

"Pretty good announcement from Port of Tauranga, that adds 70,000 containers a year, I think they do about 800,000 so its about an increase of just under 10 percent," Smalley said.

Units in the Fonterra Shareholders' Fund, which give investors access to Fonterra Cooperative Group's dividends, rose 0.5 to $5.88, and made up about a tenth of the day's turnover. Dairy prices fell to their lowest level since December 2012, in the 10th drop out of the last 11 fortnightly auctions on the GlobalDairyTrade platform, leaving economists to speculate the world's largest dairy exporter will cut its 2015 payout to farmers for a second time this year.

"If milk powder falls but the processed product doesn't fall as much, it's actually good for the fund owners because of the way the pricing is done," Smalley said. "I think they're starting to work out low milk powder prices are good for the fund."

Telecom Corp, the country's largest telecommunications provider, rose 1.3 percent to $2.765. Fletcher Building, New Zealand's largest listed company, increased 0.1 percent to $8.88.

OceanaGold led the NZX 50 lower dropping 5 percent to $3.41.

Outside the benchmark index, Kirkcaldie & Stains, the Wellington-based department store, rose 6.1 percent to $2.25. After the close of trading the company announced the separate sales of two buildings that make up its Wellington Harbour City Centre property have been consolidated into one to an unnamed buyer.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news