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

 


MARKET CLOSE:NZ shares rise as earnings loom; Air NZ gains

MARKET CLOSE:NZ shares rise as earnings loom; Air NZ, Telecom, Sky TV gain

By Suze Metherell

July 21 (BusinessDesk) - New Zealand stocks rose as investors gauged the potential for listed companies to deliver earnings growth when results season kicks off next month. Air New Zealand led gainers, having sold off on Friday after a Malaysian passenger plane was shot down. Sky Network Television and Telecom paced the advance.

The NZX 50 Index rose 17.973 points, or 0.4 percent, to 5126.899. Within the index, 24 stocks rose, 18 fell and eight were unchanged. Turnover was $102.7 million.

"We've gone through a strong period of growth and some of that's starting to flow through to companies," said Craig Stent, director at Harbour Asset Management. "Having said that, there is still a bit of uncertainty out there, and the currency is still playing a part in terms of translation of earnings. On balance we're still seeing results might be okay but outlook statements might be a bit cautious.

The New Zealand market is trading at about 16 times per-share earnings "so the earnings do need to come through to justify the high valuations."

Air New Zealand led the benchmark index higher, up 4.6 percent to $2.04. It was among decliners at the end of last week as investors digested the news that the Malaysia Airlines flight was shot down over eastern Ukraine.

Telecom, New Zealand's largest telecommunications provider, rose 1.6 percent to $2.845 and Sky TV rose 2.1 percent to $6.70. Genesis Energy advanced 1.4 percent to $1.85, leading gains among power companies. Contact Energy increased 1.3 percent to $5.44. Meridian Energy lifted 1.2 percent to $1.255 and MightyRiverPower rose 1.1 percent to $2.30.

Growth stocks fell. A2 Milk was the worst performer on the day down 6.2 percent to 61 cents. Pacific Edge, the Dunedin-based biotech company, slid 5.6 percent to 68 cents. Outside the benchmark index, SLI Systems, the search engine developer, dropped 2.9 percent to $1.36. Xero, the cloud-based accounting software, rose 0.2 percent to $23.55, paring some of Friday's decline.

Geopolitical tension "is in the back of the mind of most investors, but the US bounced on Friday reflecting some lessening of those concerns," Stent said. "The more high risk-stocks, if the world does fall apart, do get torched a bit."

Ryman Healthcare fell 0.7 percent to $8.35. The country's biggest listed retirement village builder and operator bought an 8.9 hectare undeveloped residential block in Auckland's south eastern for a $120 million project in the city.

Rival retirement village operators were mixed. Summerset Group Holdings slipped 0.6 percent to $3.26, while Metlifecare rose 0.2 percent to $4.47.

Fletcher Building, the nation's biggest listed company, lifted 0.1 percent to $8.90. Auckland International Airport slipped 0.3 percent to $3.79. Steel & Tube Holdings climbed 1 percent to $3.03.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Business Research And Development Up 29 Percent

Computer services and machinery manufacturing firms led the way in an almost 30 percent lift in business spending on research and development (R&D) in 2016, Stats NZ said today. Businesses spent $1.6 billion on R&D in 2016, up $356 million (29 percent) from 2014. More>>

ALSO:

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news