Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

MARKET CLOSE: NZX 50 Edges Higher

MARKET CLOSE: NZX 50 Edges Higher; Rakon up, Nuplex Down

Nov. 26 – New Zealand stocks were mixed, with the NZX 50 Index ending higher for the second day, as stocks that had led the preceding six-day rout, Rakon and Pumpkin Patch, extended their gains.

The NZX 50 edged up 0.1% to 2637.90, adding to yesterday’s 2.3% gain. Within the index, 23 stocks fell, 17 gained and nine were unchanged. The index is down almost 5% since Nov. 14. Rakon rose 6.3% to NZ$1.19, having sunk to NZ$1 last week, below its 2006 IPO price of NZ$1.60.

The company, which makes components used in navigation systems, may be a good medium-term buy, according to First NZ Capital. “If you believe markets can get through the next six months or so, Rakon had potential to gain a lot of ground,” said Barry Lindsay, research manager. The company, which cut its outlook for earnings this month, also benefits from a weaker New Zealand dollar, he said.

Nuplex Industries dropped 11% to NZ$3.40 after lowering its earnings forecast just three weeks after it made the prediction at its AGM. The shares have fallen 45% this year and are “quite cheap but they’re going to stay that way,” Lindsay said.

“It’s a bottoming out process,” Lindsay said of the global stock slump this month. “I just can’t believe things can get a heck of a lot worse.”

Australia’s S&P/ASX 200 Index was down 2.2% to 3540. Rio Tinto led the decline, tumbling 33% percent after BHP Billiton dropped its takeover bid. Rio may have the rating cut on US$5 billion of debt because of a slump in prices of the raw materials it produces, according to Moody’s Investors Service.

Qantas Airways fell 3.3% after Moody’s said it may lower its rating. In Tokyo, the Nikkei 225 Index fell 1.3% to 8213.22 in mid-day trading.

Air New Zealand fell 2.3% to 85 cents after the U.K. announced it would impose a tariff on long-haul air tickets to destinations such as New Zealand. Prime Minister John Key protested to British PM Gordon Brown during their meeting.

National Property Trust gained 7.7% to 42 cents after the investor said its distributable surplus in the first half rose 14% to $4.78 million. A decline in the value of its properties contributed to a first-half net loss.

Lyttelton Port Co. was unchanged at NZ$2.69. Brokerage
Hamilton Hindin Greene told the NZX it has completed its stand in the market for 2.5 million shares in the port company at NZ$2.75 apiece on behalf of Christchurch City Holdings.

(Businesswire)

ENDS

© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

Scoop HiveMind Project: Universal Basic Income - Are We Up For It?

This is an opportunity for you as one of the 4 million potential funders and recipients of a Universal Basic Income to collectively consider the issue:
1. Is UBI is a desirable policy for New Zealand; and
2. How should a UBI system work in practice. More>>

ALSO:

Lyndon Hood: National Announces Plan To Hit Youth With Big Mallets

The National party has announced its youth justice policy, which includes a controversial plan for recidivist serious youth offenders to be hit over the head with a comically large rubber mallet. More>>

ALSO:

Lyndon Hood: This ->

It's been brought to my attention that Labour's new campaign slogan is "Let's do this". A collective call to action. A mission. I myself was halfway out of the couch before I realised I wasn't sure what it was I was supposed to do. More>>

ALSO:

Scoop Hivemind Report: What New Zealanders Think About Affordable Housing

Ordinary citizens have had very few venues where they can debate and discuss as to what they believe has led to the crisis in affordable housing and how we might begin to address this. The HiveMind on affordable housing was about redressing the balance. More>>

ALSO:

New Hivemind Exploration: Opening The Election - Freshwater Quality

This is an opportunity for you as one of the 4 million guardians of our common water resources to help us find mutually agreeable solutions to the critical task of collectively managing these resources for health and sustainability. More>>

ALSO: