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

 


MARKET CLOSE: NZ stocks mixed; A2 gains on China licence

MARKET CLOSE: NZ stocks mixed; A2 Milk gains on China licence, Diligent drops

By Suze Metherell

July 22 (BusinessDesk) - New Zealand shares were mixed, with the NZX 50 Index edging higher while more stocks fell. A2 Milk Co rose after securing a licence to export infant formula to China, while other so-called growth companies Pacific Edge and Diligent Board Member Services fell.

The NZX 50 rose 6.967 points, or 0.1 percent, to 5133.866. Within the index, 16 stocks rose, 22 fell and 12 were unchanged. Turnover was $85.5 million.

A2 Milk jumped 6.6 percent from a 15-month low to 65 cents after announcing it got Chinese regulatory approval to export its a2 Platinum infant formula, three months after that country tightened rules to ban unregistered imports of infant formula. Synlait Milk, which manufactures product for A2 and is still awaiting Chinese registration, fell 1.5 percent to $3.25. Fonterra Shareholders' Fund fell 0.3 percent to $5.99.

"It's very good news - it really does confirm A2 are able to export into that market, which is probably the largest market for baby formula market in the world," said Grant Williamson, director at Hamilton Hindin Greene.

Pacific Edge was the day's worst performer falling 2.9 percent to 66 cents. Diligent Board Members Services declined 2.7 percent to $4.04.

"Companies that are in the higher risk category have been coming under a bit of pressure, particularly with the local market easing off somewhat," Williamson said. "Investors have been looking to de-risk their portfolios and take profits on some of the higher growth companies."

Some investors may also be distracted by the continuing pipeline of companies seeking to sell shares and list. Oceania Living, the retirement village operator owned by funds associated with Macquarie Group, is mulling a public listing, raising funds in a sector that's in the midst of a building boom aimed at capitalising on an aging population. Executives at Oceania didn't immediately return calls.

Listed retirement village rival Summerset Group Holdings fell 0.9 percent to $3.23. Ryman Healthcare declined 0.6 percent to $8.30 and Metlifecare retreated 0.2 percent to $2.035.

Chorus fell 0.3 percent to $1.67. The Commerce Commission said it will investigate a claim that the telecommunications network operator is attempting to sell services outside the current terms of regulation when they should still be captured by the Telecommunications Act.

Fletcher Building, New Zealand's largest listed company, rose 0.5 percent to $8.94. Telecom Corp, the nation's largest telecommunications provider, was unchanged at $2.845.

Outside the benchmark index, Moa Group, the unprofitable boutique beer maker, rose 9.5 percent to 46 cents after it said sales volumes rose 95 percent to 264,000 litres in the three months ended June 30 after moving to a more direct distribution structure in New Zealand, its largest market.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news