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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news