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

 


MARKET CLOSE: NZ shares gain, led by blue-chip stocks

MARKET CLOSE:NZ shares gain on blue-chip appeal as ikeGPS debut fizzles

By Suze Metherell

July 23 (BusinessDesk) - New Zealand shares gained, led by blue-chip stocks such as Sky Network Television, after the latest high-tech initial public offer fizzled with shares of ikeGPS sinking below its sale price.

The NZX 50 Index rose 12.664 points, or 0.2 percent, to 5146.53. Within the index, 17 stocks rose, 24 fell and nine were unchanged. Turnover was $112.2 million.

The local bourse is experiencing a flurry of listings, many of which are tech companies and spoiling investors for choice as they mull the high valuations of already listed growth stocks ahead of next month's earnings season. Today's listing of ikeGPS struggled, with the shares sinking 10 percent to 99 cents, below its initial public offer price of $1.10. The portable measuring device raised $25 million in new capital to chase growth and expand sales in its US market.

"The market is not paying for blue sky at the moment," said Paul Harrison, who helps manage $650 million of equities and property holding for Salt Funds Management. "There's been a change in sentiment around high-growth stocks that we've seen globally. People that invest in momentum are exiting these kinds of stocks, and you're seeing some of the other ones, like Serko, GeoOp and SLI pulling back."

Gentrack Group, the airport and utility software company which listed last month, rose 0.8 percent to $2.54, while Serko, the travel booking software business, fell 4.4 percent to 88 cents, below its $1.10 offer price. SLI Systems, the search engine developer which listed last year, slipped 0.7 percent to $1.39, and has more than halved its value since it January record of $2.85. NZAX-listed GeoOp, the task managing app maker, dropped 8.9 percent to 82 cents, below its $2.40 debut in October last year.

Blue chip stocks paced gains on the benchmark index, led by pay-TV operator Sky TV, which climbed 2.3 percent to $6.81. Telecom Corp rose 1.9 percent to $2.90. Fletcher Building, New Zealand's largest listed company, advanced 1.5 percent to $9.07.

"Sky TV, Fletcher and Telecom attract the global investor, and are performing quite well," Salt Funds' Harrison said.

Xero, the cloud-based accounting company, fell 1.7 percent to $23.50. At its annual general meeting in Wellington today the company said customer numbers rose to 334,000 as it looks to reach 1 million customers and foregoes profit as it chases growth.

"Those customer numbers look a little disappointing, and I think people might be disappointed they didn't get more information on the US as well," Harrison said.

Shares of Dunedin-based biotech company Pacific Edge were unchanged at 66 cents.

Units in Fonterra Shareholders' Fund fell 0.5 percent to $5.96. Fonterra Cooperative Group, the world's biggest dairy exporter, said it will scale back operations at its Waikato Canpac packing facility to five-days-a-week from its current seven days, and may cut 110 of the 330 staff employed at the site, after volumes at the plant were reduced. The units give holders access to Fonterra's dividend stream.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news