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


MARKET CLOSE: NZ stocks join global slide; Argosy falls

MARKET CLOSE: NZ stocks fall on global sentiment, Argosy paces declines

By Jason Krupp

Nov. 30 (BusinessDesk) - New Zealand stocks fell as global anxiety over Europe's sovereign debt issues and a slowdown in the Chinese economy weighed on equity markets. Argosy Property Trust led decliners, while APN News & Media Ltd. rose.

The NZX 50 Index fell 5.87 points, or 0.18%, to 3,264.5. Within the index, 15 stocks declined, 21 gained and 14 were unchanged. Turnover was $96.1 million.

In afternoon trade the Shanghai Composite Index fell 3.1% to 2,778.8, Japan's Nikkei fell 1.5% to 9,974.9, and Australia's ASX 200 fell 0.6% to 4,591.8.

"The Chinese slowdown and the debt issues in some of the European countries continue to weigh on the market," said Grant Williamson, a director at Hamilton Hindin Greene. "After a good number of months of trading higher, we just seem to be going into a period of consolidation and profit taking."

Argosy fell 2.6% to 74 cents after the property investor posted a $93 million first-half net loss yesterday, which reflected a $103.2 million non-cash charge for government tax changes. Before the tax charge, the trust made a $10.2 million profit compared with a $5.6 million loss in the same six months a year earlier, which reflected property devaluations.

Telecom Corp., New Zealand's biggest telephone company, fell 2.3% to $2.16, and Vector Ltd., the country’s largest listed network utility company, fell 0.4% to $2.43. Both companies submitted bids for government's ultrafast broadband initiative, and Williamson said the weakness on the day could be attributed to investors getting "impatient" ahead of the overdue announcement.

Goodman Property Trust, the commercial and industrial properties owner, fell 2% to 96 cents, after going ex-dividend.

Air New Zealand Ltd., the national carrier, fell 0.7% to $1.37 after it revealed it was heavily losing money on an air service between Los Angeles, Samoa and Tonga. According to a letter quoted by press, the airline said in the five years it operated the once a week service it lost more than $5.2 million, and while it was willing to continue the Samoan and Tongan governments eventually pulled the plug.

Shares in Wellington Drive Technologies Ltd., the manufacturer of highly efficient brushless electric motors for the commercial refrigeration and ventilation markets, fell 47% to 4 cents after it said it was looking to raise $8.4 million to fund operations.

The North Shore-based company is looking to undertake a one-for-one pro rate renounceable rights offer at the issue price of 1.25 cents per share, it said in a statement. That's an 86% discount on the share price of 7.5 cents immediately before the announcement.

Widespread Portfolios Ltd. was unchanged at 16 cents after the resource investor narrowed its first-half losses to $151,000 as expenses continued to outstrip revenue.

The year-earlier first-half loss was $187,000. Its largest investment, accounting for 48.8% of its $11.7 million portfolio, is a stake in the Chatham Rise rock phosphate project, which is still in the exploration and proving phase.

Pike River Coal Ltd., the embattled miner whose shares are still in a trading halt, announced that it has sold its stockpile of about 20,000 tonnes of coal to state owned Solid Energy New Zealand Ltd. Shares in New Zealand Oil & Gas Ltd., which owns a 29% stake in Pike and holds several of its debt lines and options in the company, were unchanged at 92 cents.

Fletcher Building Ltd., New Zealand's biggest construction company, was unchanged at $7.95. Government data showed building consents, excluding apartments, fell 1.1% in October to 1,096 compared with the previous month.

That's the fourth consecutive monthly decrease, and has seen the trend in the number of new dwellings slide 20% since March.

Steel & Tube Holdings, the maker of steel products used in the construction industry, fell 0.5% to $2.18.

APN, which publishes the New Zealand Herald and operates Radio Network, rose 4.2% to $2.50, leading pacing gainers on the bourse. Kathmandu Holdings, the outdoor clothing retailer, rose 3.7% to $1.68, and AMP Ltd., the Australian wealth manager looking to acquire Axa Asia pacific, rose 2.9% to $6.65.

Abano Healthcare Group rose 0.4% to $5.09 after the specialist health-care clinic investor said it expects first-half underlying net earnings will be between $2.6 million and $2.9 million but its second-half results will be well down on that.

Chair Alison Paterson told the annual shareholders' meeting revenues for the six months ended Nov. 30 are expected to be between $85.8 million and $86.8 million while earnings before interest, tax, depreciation and amortisation will be between $9 million and $9.5 million. The bottom line will be dragged down by recent changes in accounting rules to between $2.6 million and $2.9 million.

Turners & Growers, the fruit marketer and distributor, rose 3.5% to $1.47 after the World Trade Organisation ruled that Australia's 90-year-old ban on New Zealand apples is unscientific and breaks international rules, effectively ending an exhaustive 14-year battle to get restrictions lifted.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Department Of Conservation: Beech Mast On The Cards After Warm Summer

Climate modelling shows this year’s hot March has increased the chance of beech forest seeding next summer in parts of New Zealand, which could be bad news for native wildlife. The Department of Conservation (DOC) uses data from NIWA’s virtual climate ... More>>

Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Geo40: Global Plans To Recover Low-Carbon Lithium At Scale Accelerated By Investment Of Up To $7.5m By Pacific Channel

New Zealand’s leading sustainable, mineral-recovery company, Geo40 Limited has secured up to $7.5m in equity investment from New Zealand deep-tech specialist Venture Capital firm Pacific Channel to fast-track plans to develop its nascent lithium-from-geothermal-fluid ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>