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

 


MARKET CLOSE: NZ shares rise; Sky TV gains on earnings

MARKET CLOSE: NZ shares rise; Sky TV gains on earnings, Tower leads on capital gain

By Suze Metherell

Aug. 22 (BusinessDesk) - New Zealand shares rose for the fourth consecutive day as reporting season gave investors confidence in the market. Sky Network Television advanced after beating analysts' expectations for annual profit. Tower rose to a year-high after the central bank lowered it minimum solvency reserve by $30 million.

The NZX 50 Index rose 14.080 points, or 0.3 percent, to 5166.995. Within the index, 25 shares rose, 14 fell and 11 were unchanged. Turnover was $109 million.

So far in the earnings season companies have largely met expectations, giving investors comfort the markets gains are justified.
"It's always nice to see companies having good numbers that the market expects, we haven't had too many disappointments and there were a couple of out-performers," said James Smalley, director at Hamilton Hindin Greene. "It has given people a reason to put additional funds into the market."

Sky TV rose 3.2 percent to $6.72 after New Zealand's dominant pay-TV company posted a better than expected 21 percent gain in annual profit to $165.8 million, the fifth annual gain, as it garners more fees from an increasing number of subscribers and more higher-margin My Sky users.

"It was a solid result from Sky TV, beating expectations," Smalley said. "They've already had one near miss with the Commerce Commission and when you're in any type of business where you are consistently making quite large money it seems to be the way it goes with regulation in New Zealand that sooner or later you're going to fall under the eyes of the Commerce Commission. At the moment investors are certainly happy with that business.:"

Pacific Edge advanced 4.3 percent to 73 cents. The Dunedin-based biotech company has fallen 59 percent from its February high of $1.76.

"A little bit of hype or momentum came out of the stock," Smalley said. "Pacific Edge is no longer the speculative stock, they've actually got a product that they're selling now. They're recovering back from an oversold position."

Tower led the benchmark index higher, up 4.8 percent to a year high of $1.96. The Reserve Bank lowered the general insurer's minimum solvency level to $50 million from $80 million as it progresses through its Canterbury earthquake claims. Tower flagged a return of capital to shareholders once its Christchurch claims are completed.

"The Reserve Bank has allowed it to free up $30 million of capital, which it could potentially use from an acquisition point of view or the company has been reasonably proactive with capital return to shareholders," Smalley said.

Spark New Zealand, formerly known as Telecom Corp, was the day's worst performer down 1.7 percent to $2.86, after it said annual profit doubled to $460 million but anticipates low single digit growth in adjusted Ebitda for the 2015 year, even as revenue is forecast to decline by a low single digit. New Zealand's largest telecommunications provider's rebrand it part of its business overhaul to become a data-driven and mobile-focused operator and away from its traditional infrastructure business, which it shed when it demerged with Chorus.

Xero rose 1 percent to $23.75 after the cloud-based accounting software company said it has more than 147,000 paying customers in Australia and plans a free trial offer of its service through the country's largest telecommunications provider, Telstra.

Seeka Kiwifruit Industries was unchanged at $3.29. The fruit grower and coolstore and packhouse operator said it more than doubled first-half profit to $1.48 million in the six months ended June 30, as challenging trading conditions and rising costs were offset by gains from the sale of its cornerstone stake in Opotiki Packing and Cool Storage.

Cavalier Corp was unchanged at $1.03 after the listed carpet maker posted a 13 percent drop in annual profit excluding one-time restructuring costs last year to $6.6 million, as it battled a high currency and margins were squeezed by rising wool prices.

(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