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


MARKET CLOSE: NZ shares fall as polls weigh on utilities

MARKET CLOSE: NZ shares fall as political polls weigh on utilities

By Paul McBeth

Aug. 18 (BusinessDesk) - New Zealand shares fell, paced by power companies, as political polls showing declining support weigh on regulated utilities in a thinly traded market.

The NZX 50 Index fell 6.962 points, or 0.1 percent, to 5071.119. Within the index, 25 stocks fell, 20 gained, and five were unchanged. Turnover was a smaller-than-usual $85.1 million.

Power companies gained nothing from strong results announced today by Contact and Meridian Energy, as recent political polls showed reduced support for the incumbent National-led administration. Power companies have been buoyed by support for the current government, as the Opposition parties have promised to overhaul the electricity market with a central buying agency.

Contact Energy shares were unchanged at $5.47 after the electricity retailer reported an 18 percent increase in annual profit to $234 million, hiked its dividend for a second year in a row and spoke openly about the potential for a capital return to shareholders. Meridian instalment receipts fell 0.8 percent to $1.275 after the state-controlled power company beat its prospectus forecast with a 22 percent drop in annual earnings to $229.8 million.

MightyRiverPower fell 0.6 percent to $2.37, Genesis Energy declined 1.4 percent to $1.80, and TrustPower decreased 0.7 percent to $7.05.

"The political landscape is a little more fluid with some of the polling looking not totally in National's favour," said Shane Solly, director at Harbour Asset Management. "This sector and utilities have benefited from National looking like being re-elected."

Solly said the big earnings day, which also included Freightways, meant trading was lighter than usual as analysts pored over the reports.

"In the reporting season to date it's been relatively solid. We've seen more companies with earnings meeting expectations and some modest upgrades," he said.

Shares of Freightways gained 4.5 percent to a six-week high of $5.12 after it lifted profit excluding one-time items by 12 percent to $43 million in the 12 months ended June 30.

Outside the NZX 50, Opus International Consultants dropped 6.6 percent to $1.70 after the engineering firm increased first-half profit 6 percent to $9.9 million, just shy of First NZ Capital's forecast $10 million.

A2 Milk Co led the benchmark lower, falling 3 percent to 65 cents. Retirement village operator Summerset Holdings fell 2.4 percent to $2.81. Rival Ryman Healthcare fell 1.2 percent to $7.66, and Metlifecare was unchanged at $4.28.

Spark, formerly Telecom, fell 2.1 percent to $2.82 and Fletcher Building increased 0.2 percent to $9.05.

Xero led gainers on the day, up 5.6 percent to $21.30. Shares of the software developer plunged to a 10-month low last week as investors questioned the company's US growth aspirations. Guinness Peat Group gained 1.7 percent to 60, having fallen 16 percent through the latter half of last week after saying it was still grappling with its UK pension liability.

Hallenstein Glasson was unchanged at $3.05 after the clothing chain warned annual profit fell 25 percent, with a stronger second half failing to turn around a weak first six months of the financial year.

Shares of Lateral Corp closed the day at 20 cents after the mobile payments firm joined the NZX's small-cap Alternative Market in a compliance listing.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Sweet Health: Sugary Drinks Banned From Hospitals And Health Boards

All hospitals and DHBs are expected to kick sugary drinks out of their premises. University of Auckland researcher, Dr Gerhard Sundborn who also heads public health advocacy group “FIZZ”, says he welcomes the initiative. More>>


NASA: Evidence Of Liquid Water On Today's Mars

Using an imaging spectrometer on MRO, researchers detected signatures of hydrated minerals on slopes where mysterious streaks are seen on the Red Planet. These darkish streaks appear to ebb and flow over time. More>>


Bird Brains: Robins Can Just Be Generally Clever

Research from Victoria University of Wellington has revealed that birds may possess a ‘general intelligence’ similar to humans, with some individuals able to excel in multiple cognitive tests. More>>


Psa-V: Positive Result On Whangarei Kiwifruit Orchard

Kiwifruit Vine Health (KVH) has received a Psa-V positive test result on Hort16A and male vines on a kiwifruit orchard in Whangarei. This is the first confirmed case of Psa-V on an orchard in the Whangarei region. More>>

Regional Accents: Are Microbes The Key To Geographical Differences In Wine?

A new study of six of New Zealand’s major wine-growing regions has found that differences in flavour and aroma of wine from different areas may depend more on microbes than was previously thought. More>>


Science: AgResearch To Cut Science Staff In Areas Of 'Reduced Demand'

“We are therefore consulting with our staff from today on a proposal to reduce science staff in areas of shrinking demand. Combined with recruitment planned in areas of growing demand, this would mean a net reduction of 15 scientists and 41 technicians at AgResearch in the 2015/16 year." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news