Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

MARKET CLOSE: NZ shares mixed

MARKET CLOSE: NZ shares mixed as Bellamy's stoush weighs on A2 Milk

By Sophie Boot

Jan. 5 (BusinessDesk) - New Zealand shares were mixed in holiday trading with yield stocks such as Spark New Zealand and Chorus attracting buyers, while A2 Milk Co was dragged lower by a looming boardroom stoush at ASX-listed rival Bellamy's Australia.

The S&P/NZX 50 Index edged up 1.3 points, or 0.02 percent, to 6,975.6. Within the index, 24 stocks fell, 18 rose and eight were unchanged. Turnover was $85.7 million.

"It's just really slow holiday trading at the moment, yesterday we saw some quite good buying in some of the blue chips but they've probably weakened off a bit today," said Peter McIntyre, investment adviser at Craigs Investment Partners. "We've seen a bit of reversal in interest rates, we've seen swap rates give back some of the gains they made towards the later part of 2016, and we've seen some interest rate sensitive stocks go higher on the back of that - namely Spark, Chorus, Contact, Mercury have been the main ones today."

Spark rose 2.9 percent to $3.60, Mercury New Zealand gained 2 percent to $5.26, Chorus rose 1.7 percent to $4.105 and Contact Energy gained 1.5 percent to $4.74.

Retirement village operator Arvida Group, which joined the benchmark index on Dec. 16, was the best performer, up 3.1 percent to $1.34.

Scales Corp was the worst performer, down 2.9 percent, or 10 cents, to $3.37, after giving up rights to an 8-cent interim dividend.

A2 Milk Co fell 1.4 percent to $2.09. The share price began dropping in December after Australian competitor Bellamy's was placed in a trading halt, which has been extended until Jan. 13. The shares began recovering when A2 gave an upbeat pre-Christmas market update, but resumed their downward track yesterday after news that Singapore-based Black Prince Private Foundation, which holds 14.5 percent of Bellamy's, has requisitioned an extraordinary general meeting of Bellamy’s shareholders to remove four independent directors and replace them with four of its nominees.

"That adds another dimension to the existing news flow from Bellamy's which is yet to come out in fullness," McIntyre said. "Until there's further news flow, I think a lot of investors may want to de-risk themselves from that sector or industry. Their recent share price weakness is a bit of an overreaction really, there's a lot of other stuff happening in Bellamy's that A2's not a party to. I suspect while this trading halt's in play, it's going to drift a bit."

Fonterra Shareholders Fund dipped 0.3 percent to $6.03. Dairy product prices fell at the GlobalDairyTrade auction this week, sliding for a second consecutive auction, as whole milk powder prices unexpectedly sank amid increased volume on offer.

"Obviously the weaker GlobalDairyTrade is actually beneficial to the Fonterra units as one of their major input costs, the price of milk, holding steady benefits the value-add portion of their business," McIntyre said. "It's another stock that's had a pretty impressive six months, up over 11 percent in that time."

NZX fell 2.9 percent to $1.02, Port of Tauranga declined 2.3 percent to $3.86, and Fletcher Building dropped 1.9 percent to $10.60.

Outside the benchmark index, Hellaby Holdings was unchanged at $3.52. ASX-listed auto-parts company Bapcor has built a 48.7 percent stake in Hellaby, creeping closer to winning control of its target with its $3.60 offer.

IkeGPS was unchanged at 39 cents. Hong Kong investor Scobie Ward, who co-founded hedge fund Ward Ferry Management, has emerged as a substantial shareholder in the laser measurement device maker.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Yesterday’s Budget

It may seem like Oliver to be so bold as to ask the Finance Minister for more gruel – but what the Dickens, Steven Joyce… is this Budget really as good as it gets?

Supposedly, the public was going to receive significant rewards – an election year lolly scramble no less – for the eight years of belt tightening that they’ve endured, and for the rundown of essential public services.

Well, what Budget 2017 delivered instead in Education and in Health were allocations barely sufficient to maintain the current levels of service delivery More>>

Scoop Full Coverage: of Budget Announcements & Reaction
Latest: Scoop Search

ALSO:

 
 

Auditor-General Stands Down For Investigation: Gordon Campbell On (Not) Taking Responsibility

So Martin Matthews, our current Auditor-General wishes he could have detected “earlier” the fraud that occurred on his watch at the Ministry of Transport. Hmmm. But he could have detected it earlier, surely? That’s the point. More>>

ALSO:

NGOs Pleased: Govt To Halt Collection Of Client Data

Brenda Pilott, the chair of ComVoices and national manager of Social Service Providers Aotearoa, congratulates the government on its decision to call a halt to the collection of individual client data until the concerns of not-for-profit service providers have been worked through. More>>

ALSO:

Gosh: Blasphemy Law Repeal Struck Down

Chris Hipkins, the MP who tabled a Supplementary Order Paper to add our Blasphemy Law to the Statutes Repeal Bill, said this was a "sad day for freedom of speech, tolerance, and leadership". More>>

ALSO:

Gordon Campbell: On The Navy’s Dealings With Fat Leonard, And Twin Peaks

At an official level, our “she’ll be right” attitude routinely spills over into a keen resentment of anyone who suggests the outcomes may be less than satisfactory… The Navy has now gone one step beyond. It won’t even ask itself whether it did a good job. More>>

ALSO:

NZDF: Fifth Rotation Of Troops Heads To Iraq

The fifth rotation of New Zealand Defence Force troops left today for a six-month mission training Iraqi soldiers. More>>

ALSO:

Gordon Campbell: On The Demonising Of Iran

Will New Zealand still be willing to pursue its recent trade overtures to Iran, now that US President Donald Trump has used his speech in Riyadh to single out Iran as the main source of terrorism and instability in the Middle East? More>>

ALSO:

 
 
 
 

Opening The Election Supporters

 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog