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 drop as earnings disappoint

MARKET CLOSE NZ shares drop; Skellerup, Nuplex, Fletcher slide

Feb. 21 (BusinessDesk) – New Zealand shares fell, pushing the NZX 50 Index to a month-low as Skellerup Holdings and Nuplex Industries missed profit expectations and cut guidance, and Fletcher Building continued its correction following its results yesterday.

The NZX 50 fell 43.81 points, or 1 percent, to 4170.4, the lowest close since Jan. 18. Within the index, 26 stocks fell, 12 rose and 12 were unchanged. Turnover was a higher than average $193 million.

Skellerup fell 6.7 percent to $1.53 after the industrial rubber goods maker reported an 18 percent slump in first-half profit to $9.5 million, missing expectations, and cut its annual earnings forecast to $20 million.

Nuplex, the specialty chemicals maker, fell 4 percent to $3.33 after posting first-half profit that more than halved to $11.5 million and cutting its annual guidance, blaming the strength of the currency and weak trading conditions in Australia and Europe. Fletcher Building, which missed some analyst estimates on weak trading in Australia, fell 3.6 percent to $8.55.

“The market got ahead of itself on expectations and companies are missing those expectations,” said Grant Williamson, a director at Hamilton Hindin Greene. “The market is realigning back to healthier levels. It’s a healthy correct.”

OceanaGold, operator of the Macraes gold field, dropped 10 percent to $2.61 as the price of spot gold fell to a 7-month low.

Contact Energy declined 1.9 percent to $5.30 after parent Origin Energy posted a 34 percent drop in first-half profit and Standard & Poor’s cut its credit rating to BBB from BBB+.

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.

Summerset Group, the retirement village operator, fell about 2 percent to $2.49 after Auckland Council turned down its application to build a new village in Hobsonville.

Auckland International Airport, the nation’s busiest gateway, was unchanged at $2.705 after posting an 11 percent increase in first-half profit and lifting its full-year guidance as growth in domestic passenger traffic made up for a decline in those from overseas. Some 8.9 million shares changed hands.

Port of Tauranga, the nation’s busiest export port, rose 0.3 percent to $13.85 after reporting record first-half earnings on increased volumes export volumes of dairy products, meat and logs. The company affirmed its full-year guidance.

AMP climbed 2.4 percent to $6.76 after reporting a 2.3 percent gain in full-year net profit to A$704 million.

Precinct Properties New Zealand, formerly known as AMP NZ Office, rose 2.4 percent to $1.05, leading gainers on the NZX 50. The property group this week announced an interim dividend of 2.56 cents from 2.5 cents a year earlier.

Vector rose 0.7 percent to $2.85 after reporting a 10.8 percent improvement in tax-paid profit for the six months to Dec. 31 to $118 million in a flat economy.

Ebos Group, the medical and pet supplies company, rose 0.6 percent to a record close of $9.15. This week it lifted first-half profit by 29 percent on the contribution of its Masterpet business, acquired a year earlier.

“The company came out with a fantastic result,” Williamson said.

(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.