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

 


MARKET CLOSE: NZ shares slip from record led by Spark

MARKET CLOSE: NZ shares slip from record led by Spark; Air NZ extends gain

By Suze Metherell

Aug. 28 (BusinessDesk) - New Zealand shares fell from a record, led by Spark New Zealand, as investors locked in gains ahead of next month's general election, which is creating some uncertainty in markets. Air New Zealand rose for a second day after posting a 45 percent gain in annual profit.

The NZX 50 Index fell 6.186 points, or 0.1 percent, to 5237.514. Within the index, 16 stocks fell, 26 gained, eight were unchanged. Turnover was $93.9 million.

The benchmark index slipped from its high as investors looked past earnings season to the general election next month. An NZ Herald-DigiPoll survey today showed the incumbent National Party is likely to return for a third term in government, though recent polls have shown declining support for the administration.

"Investors are looking to book profit," said James Smalley, director at Hamilton Hindin Greene. "Once we get through reporting season, the next big thing will be the election on September 20. Obviously there is a bit of water to go under the bridge there, and that could create quit a bit of uncertainty, and markets don't like uncertainty."

Stocks that have gained in recent days paced the decline on the benchmark, with Spark, formerly Telecom Corp, falling 3.1 percent to $2.945 from a six-year high. Ryman Healthcare, the retirement village operator, dropped 2.2 percent to $8.00, having advanced 2 percent over the past week. Tower, the general insurer, declined 1 percent to $1.98, after rising above the "psychological barrier price" of $2.00 yesterday.

Air NZ advanced 1.8 percent to a two-month high $2.215, extending yesterday's gain after the national carrier lifted annual profit for third consecutive year to $262 million. Meanwhile, trans-Tasman rival Qantas Airways booked a A$2.84 billion loss as it wrote down the value of its international fleet and faced restructuring and redundancy costs. The numbers also showed its kiwi discount airline, Jetstar Airways, had lost market share in New Zealand. While Air NZ enjoys a virtual monopoly on many domestic routes, Qantas faces stiff competition from discount airlines such as Virgin Australia, which Air NZ has a 20 percent stake, and Tiger Airways.

"The contrasting performance of the two airlines really shows you the difference," Smalley said. "One has very strong market dominance and a monopolistic way in its domestic market, versus Qantas which has very very strong competition both on its international routes, and also on its domestic routes."

A2 Milk Co was unchanged at 65 cents. The company which markets milk with a protein variant said to have health benefits said annual profit tumbled to $10,000 from $4.1 million a year earlier. It plans to ramp up its expansion in the US, the UK and Asia using cash generated in its biggest market of Australia after a year in which a strong kiwi slashed the value of sales.

NZX was unchanged at $1.23. The stock market operator revealed its new market with lighter disclosure requirements will be called NXT, as it waits on the final go-ahead from the Financial Markets Authority.

Fletcher Building, New Zealand's largest listed company, advanced 0.7 percent to $9.29.

Pacific Edge was the best performer on the day rising 2.5 percent to a two-month high of 82 cents, after the Dunedin-based biotech company said Kaiser Permanete, which has more than nine million healthcare users in the US, would trial its non-invasive bladder cancer detecting test, Cxbladder. That added to its 8.1 percent gain yesterday.

Outside the benchmark index, Airwork Holdings rose 3.8 percent to $2.75 after the aviation services firm, which listed last December, boosted annual profit 52 percent to $9.83 million on the strength of its helicopter engineering unit, beating guidance.

Hellaby Holdings fell 5.3 percent to $2.99 after the diversified investment company sank into the red by $1.1 million in the latest financial year, from a previous profit of $18.2 million, as it wrote down the value of its footwear unit in a flat retail market. Still, it sweetened its dividend as underlying earnings grow. Stripping out a $26.8 million charge on the goodwill of its Hannahs and Number One Shoes brands, earnings rose 44 percent to $26.8 million,

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news