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 Tower; AIA falls

MARKET CLOSE: NZ shares gain led by Tower; Auckland Airport falls on earnings

By Suze Metherell

Aug. 26 (BusinessDesk) - New Zealand shares rose on optimism Tower has more scope to return capital after making progress meeting earthquake claims in Canterbury, while Fisher & Paykel Healthcare rose to a record on optimism it will benefit from a falling kiwi dollar.

The NZX 50 Index rose 12.887 points, or 0.2 percent, to 5195.630. Within the index, 24 stocks rose, 17 fell and nine were unchanged. Turnover was $83 million.

Tower climbed 2 percent to a 13-month high of $2.00. The general insurer said last week that the minimum solvency required by the Reserve Bank has fallen to $50 million from $80 million. It has previously flagged a capital return once Canterbury claims are resolved and will have funds on hand including $36 million from the sale of its remaining life insurance business.

"Most people believe that $30 million will be returned to shareholders in some way, so it adds more credibility that the balance sheet is very, very stable," said Rickey Ward, NZ equity manager at JB Were. "It's very strong in fact - no debt, excess capital and now they've got more capital."

F&P Healthcare, which gets more than half its sales in US dollars, rose 1.8 percent to $5.00, the highest in at least two decades.The New Zealand dollar has fallen to a six-month low against the US currency, giving companies with large currency exposure some relief, and in turn boosting their share price, Ward said.

Nuplex Industries led the index higher, gaining 2.3 percent to $3.08. The chemicals manufacturer exports across Australia, Asia and Europe. Fletcher Building, which generates half its income in Australia, climbed 1.1 percent to $9.25.

Earnings season continued today, with five listed companies reporting their results, helping to provide support to the benchmark index which has gained 9.8 percent since the start of the year.

"It's always challenging and very difficult to figure out if your market is undervalued or overvalued," said Ward. "We haven't seen too many companies disappoint on expectations for earnings but it comes down to your appetite for risk and what price you want to pay for future earnings."

Auckland International Airport fell 2.4 percent to $3.66 after the country’s main gateway reported an 11 percent gain in full-year underlying earnings to $169.9 million, broadly in line with guidance it gave in the first half, as aeronautical charges led a gain in revenue that outpaced growth in expenses.

"It was slightly up on what the market was expecting," said Ward. "It's more the outlook statement - they're promoting a full-year profit roughly in line with what they delivered this year, and based on that you're paying a big price for it."

New Zealand Oil & Gas fell 0.6 percent to 78 cents after the exploration company, which has interests in the Tui and Kupe fields, posted a 61 percent drop in annual profit to $10.1 million, reflecting a "sharp" increase in exploration costs and some foreign exchange losses on its US dollar holdings.

Spark New Zealand, formerly known as Telecom, rose 1.4 percent to $2.94.

Outside the benchmark index, Tourism Holdings jumped 9.5 percent to a near-six-year high of $1.39 after New Zealand and Australia's largest holiday vehicle rental business said annual profit soared 192 percent to $11.1 million, beating its July guidance, as profitability improves across its New Zealand, Australian and US units. The company will pay a final dividend of 6 cents, bringing its full-year dividend to 11 cents.

SLI Systems climbed 5.7 percent to $1.48. The Christchurch-based the search engine software developer reported a smaller loss of $5.7 million, compared to the $7.2 million it flagged in its prospectus last year.

Wynyard Group fell 3.6 percent to $2.15 after the company, which makes security software, reported a wider first-half loss of $10.2 million, from a loss of $3.1 million a year earlier, as it spent more on its expansion plans and said sales in the full-year are dependent on the timing of major contracts.

Acurity Healthcare Group was unchanged at $6.65. Its independent directors have unanimously accepted Connor Healthcare's takeover offer for the 29 percent of the company it doesn't own, after Connor boosted its offer by 75 cents per share to $7.25 a share.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news