Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

MARKET CLOSE: NZ shares rise; Spark, Meridian gain

MARKET CLOSE: NZ shares rise; Spark, Meridian gain; Xero drops as FY loss widens

By Suze Metherell


April 24 (BusinessDesk) - New Zealand shares rose, paced by Spark New Zealand and Meridian Energy, as investors sought dividend paying stocks. Xero dropped after it reported its full year loss nearly doubled.


The NZX 50 Index rose 7.447 points, or 0.1 percent, to 5765.356. Within the index, 22 stocks rose, 20 fell and nine were unchanged. Turnover was $133 million.


Yesterday, the Reserve Bank of New Zealand's assistant governor John McDermott said it isn't considering an increase in interest rates at present and is watching for any signs of weakening demand and domestic inflationary pressures that could warrant a rate cut. Investors looking for yield sought income paying equities.

Spark, formerly known as Telecom Corp, climbed 2 percent to $2.855, rebounding from its lowest level since August last year. Meridian Energy, the partially privatised company, rose 1.1 percent to $1.90. The stock has come under pressure as investors get ready to pay a 50 cent installment receipt next month.


"We had the Reserve Bank speech yesterday which was very dovish and people are now starting to factor in a slightly higher probability of a potential rate cut," said Mark Lister, head of private wealth research at Craigs Investment Partners. "Spark has been drifting lower over the last month or so... and was starting to get to levels that look attractive. Meridian has had a rebound today, that's another high yield stock so maybe what's supporting Spark is also supporting Meridian."

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.


Xero dropped 9.4 percent to $20.85 to the worst performer on the benchmark index. The cloud-based accounting software firm said its annual loss widened to $69.5 million from $35.5 million a year earlier, as its increased spend on product development, sales and marketing for future growth, offset a rise in sales. It also announced its US-based chief financial officer Douglas Jeffries has left after only two months in the role and its previous CFO Ross Jenkins will assume the role until it finds a replacement. In September, Xero’s North American chief executive Peter Karpas left the business just six months after joining.


"Topline revenue was probably where people expected it to be but profit margins were down because costs went up more quickly than people expected," said Mark Lister, head of private wealth research at Craigs Investment Partners. "When you loose a CFO and they've only been there for a pretty short space of time the market was never going to take an announcement like that well."


Air New Zealand dropped 2.1 percent to $2.75. The national carrier had benefited from a drop in global oil prices, with jet fuel being a major input cost for the airline, however oil prices have begun to rise, meaning cheaper fuel might be over, Lister said.


Pacific Edge, the biotech firm, led the benchmark index higher up 2.7 percent to 75 cents. Trade Me Group, the online auction site, paced the gain advancing 2.4 percent to $3.81. Ebos Group, the animal and healthcare manufacturer, rose 2.1 percent to $9.85.


Outside the benchmark index, Abano Healthcare fell 1.3 percent to $7.65. The medical investment firm said it expects to report a small full-year loss after it agreed to sell its stake in Aotea Pathology and following the sale of its orthotics unit in January, which resulted in impairments on both businesses. The net loss is expected to be $1.3 million to $1.9 million in the year ending May 31.


(BusinessDesk)

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.