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

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news