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

 


MARKET CLOSE: NZ shares rise, led by Pacific Edge on patent

MARKET CLOSE: NZ shares rise, led by Pacific Edge on patent news; Chorus falls

By Suze Metherell

Sep. 4 (BusinessDesk) - New Zealand shares rose, led by Pacific Edge after it was granted a US patent for skin cancer detection, signalling a new product line for the biotech company. Chorus fell after the Commerce Commission said it had been advised a variant 'Boost' service would breach the terms of the company's regulation.

The NZX 50 Index rose 4.153 points, or 0.1 percent, to 5228.549. Within the index stocks were mixed, as 18 gained, 20 fell and 12 were unchanged. Turnover was $156 million.

Pacific Edge jumped 9.8 percent to 90 cents, and has gained 20 percent in the past month. The Dunedin-based biotech company is targeting the US market with its non-invasive bladder cancer test by securing healthcare provider trials, and announced it had secured a US patent for a skin cancer test today. Earlier in the year the stock touched a record of $1.76, before falling in a global sell-off of biotech and software stocks when investors questioned their high valuation to earnings ratio.

"There has been a string of positive announcements for the company which have a pretty strong impact on the share price," said Mark Lister, head of private wealth research at Craigs Investment Partners. "It's been a very big rebound, but it is still well and truly off those high levels."

Chorus slipped 0.6 percent to $1.77. The telecommunications network operator charged with building New Zealand ultrafast broadband network is in dispute with the Commerce Commission over the proposed cuts to the network operator’s regulated prices, and is pitching new services outside the terms of regulation. The regulator today sought feedback on legal advice which held the opinion those new variant services fell outside the terms of regulation.

"It's what I call a cheap stock with a certainly above-average risk profile, and it's one of those stocks that will fall into an uncertain camp for quite a while," Lister said. "There are two schools of thought on Chorus - the people who think it's good value and ultimately a lot of these issues will be resolved to some degree and the company will have a future. Others put it firmly in the too hard basket and don't want to go there."

Trade Me Group, the online auction site, was the worst performer on the day, dropping 2.4 percent to $3.67. Mainfreight, the logistics company, declined 2 percent to $14.85.

Vector, the Auckland-based lines company, fell 2.3 percent, or 6 cents, to $2.58, after shedding rights to a final dividend payment of 7.75 cents per share.

Fletcher Building, New Zealand's largest listed company, fell 0.2 percent to $9.24.

Spark, formerly Telecom Corp and Chorus's biggest customer, rose 1.7 percent to $3.04. Auckland International Airport increased 1 percent to $3.755.

Precinct Properties advanced 1.8 percent to $1.13 after announcing it had properties short-listed as possible options for the government Wellington accommodation project for office space.

Outside the benchmark index, Briscoe Group was unchanged at $2.90, having jumped to an intraday record of $3 after the homeware and sporting goods retail chain, boosted first-half profit 24 percent to $18.5 million as it improves the layout of its stores and benefits from a strong New Zealand dollar.

PGG Wrightson, the rural services firm controlled by China’s Agria Corp, rose 1.2 percent to 41 cents. Rob Woodgate has resigned as chief financial officer after more than five years with Wrightson.

Dual-listed APN News & Media rose 4.8 percent to 87 cents after announcing plans to raised US$250 million from US institutional investors in an senior unsecured note offer. The offer document outlined more details about the media group's plan to spin-out its New Zealand business and list it on the NZX.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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