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

 

MARKET CLOSE: NZ shares fall most across Asia

MARKET CLOSE: NZ shares fall most across Asia; Z still under pressure

By Paul McBeth

Oct. 19 (BusinessDesk) - New Zealand shares fell the most across Asia as Z Energy led the market lower for another day amid rising oil prices, growing competition and the threat of increased regulation.

The S&P/NZX 50 index dropped 108.33 points, or 1.2 percent, to 8,802.26. Within the index 39 stocks fell, nine gained and two were unchanged. Turnover was $115.6 million.

The local market posted the biggest decline across Asia-Pacific.Australia's S&P/NZX 200 index was down 0.2 percent in afternoon trading, Hong Kong's Hang Seng fell 0.3 percent, and Japan's Topix was down 1.1 percent.

Z Energy led the local market lower, falling 3.9 percent to $6.10, the lowest close since February 2016. The share price has dropped 11 percent this week after the transport fuels company reported lower petrol volumes as oil prices rise. At the same time, it's facing increased competition from low-cost operators such as Waitomo and has the government threatening regulatory intervention.

Matt Goodson, managing director at Salt Funds Management, said the share price is under pressure from the operational data showing lower fuel volumes and what impact a Commerce Commission study into the fuel market will have on margins. Those regulatory powers are yet to be passed into law.

"It's a little convergence of difficulties for Z," he said.

New Zealand Refining fell 3.2 percent to $2.43.

Ryman Healthcare fell 3.9 percent to $12 on lighter than usual volumes. Metlifecare was down 2.5 percent at $5.85 and Summerset Group declined 1.3 percent to $6.85.

Goodson said housing data for September showed a slow market in what's typically a busy month, and that may be weighing on the retirement village operators.

Spark New Zealand reported the busiest activity with 2.6 million shares traded, with the stock rising 0.5 percent to $3.90. Contact Energy fell 0.4 percent to $5.61 on volume of 2.5 million and Meridian Energy was down 0.8 percent to $3.11 on 2.2 million shares traded.

Auckland International Airport fell 1.3 percent to $6.92 on a volume of 1.9 million. Kiwi Property Group was down 0.4 percent at $1.35 on 1.8 million shares, and Air New Zealand fell 1.3 percent to $2.74 on one million shares.

Restaurant Brands New Zealand slipped 2 percent to $8.50, giving up some of yesterday's 14 percent gain. The fast-food operator has received an indicative takeover offer of $9.45 for three-quarters of the company. First NZ Capital raised its rating on the stock to 'neutral' and said the offer price was compelling.

Fletcher Building fell 2.1 percent to $6.10 and Sky Network Television rose 1.3 percent to $2.28. A2 Milk Co declined 1 percent to $10.31.

Ebos Group slipped 0.5 percent to $21.70 after saying it will pay A$50 million to buy out minority shareholders in Terry White Group.

Outside the benchmark index, Tilt Renewables slipped 0.9 percent to $2.28 after raising earnings guidance while cutting the value of its Australian assets. The company is under a takeover offer from Infratil for $2.30 a share. Infratil fell 0.7 percent to $3.435.

Pyne Gould Corp rose 6.1 percent to 35 cents. After the close of trading, Pyne Gould issued a notice of a special meeting to vote on a plan to leave the NZX for Guernsey listing. The meeting will be held in Queenstown on Oct. 31.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Industry Report: Growing Interactive Sector Wants Screen Grants

Introducing a coordinated plan that invests in emerging talent and allows interactive media to access existing screen industry programmes would create hundreds of hi-tech and creative industry jobs. More>>

ALSO:

Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>

ALSO:

Royal Society: Calls For Overhaul Of Gene-Technology Regulations

An expert panel considering the implications of new technologies that allow much more controlled and precise ‘editing’ of genes, has concluded it’s time for an overhaul of the regulations and that there’s an urgent need for wide discussion and debate about gene editing... More>>

ALSO:

Retail: Card Spending Dips In July

Seasonally-adjusted electronic card spending dipped in July by 0.1 percent after being flat in June, according to Stats NZ. Economists had expected a 0.5 percent lift, according to the median in a Bloomberg poll. More>>

ALSO:

Product Stewardship: Govt Takes More Action To Reduce Waste

The Government is proposing a new way to deal with environmentally harmful products before they become waste, including plastic packing and bottles, as part of a wider plan to reduce the amount of rubbish ending up in landfills. More>>

ALSO:

Earnings Update: Fonterra Sees Up To $675m Loss On Writedowns

“While the Co-op’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, when you take into consideration these likely write-downs, we expect to make a reported loss of $590-675 million this year, which is a 37 to 42 cent loss per share." More>>

ALSO: