MARKET CLOSE: NZX 50 fall led by Argosy; Xero hits new high

MARKET CLOSE: NZ stocks fall led by Argosy; Xero hits new record-high

By Jason Krupp

Dec. 3 (BusinessDesk) - New Zealand stocks fell, led lower by Argosy Property Trust after it took control of a joint venture in Palmerston North, while Xero Ltd. hit a new record-high.

The NZX 50 Index fell 2.19 points, or 0.1%, to 3,283.29. Within the index, 20 stocks declined, 19 gained and 11 were unchanged. Turnover was $80.1 million. The bourse rose 0.8% on the week.

Argosy, the listed property developer formerly known as ING Property Trust, fell 2.7% to 73 cents, after it bought out Valour Ideal's stake in the Palmerston North venture when Valour wasn't able to fund its share of the development. No money has changed hands with Argosy assuming Valour’s debts and obligations in lieu cash, effective as of Nov. 30.

Xero, the online accounting software maker which isn’t on the top 50 index, rose 6.3% to a record high of $2.18, after it was named the eighth-fastest growing company in the Asia Pacific, according to Deloitte's list of the top-10 fastest growing firms.

"It is not bang smack in the middle of our radar, but it is getting more and more attention from brokers," said Stuart Hardie, an advisor with Craigs Investment Partners. "It is a very impressive company and a good kiwi success story."

Tourism Holdings, the camper van rental company, fell 1.3% to 74 cents after it announced it was expanding into the U.S. marker with the acquisition of JJ Motorcars Inc., the recreational vehicle rental company, for $17 million. The deal, the first big acquisition after several years of selling assets, will add as many as 450 RVs to its fleet.

NZX Ltd., the securities market operator, fell 0.7% to $1.47 after Bernard Doyle at JB Were Investment Strategy Group said in a submission to the Savings Working Group the New Zealand equity market faces possible extinction due to a lack of initial public offerings, waning international interest and poor market liquidity.

Sanford Ltd. was unchanged at $4.58. The fisheries group, which recently acquired the Greenshell mussel and Pacific oyster business from Pacifica Seafoods for $85 million, today said the unexplained deaths sweeping through upper North Island oyster beds will have minimal impact on the company.

According to the company's financial report for the year to Sept. 30, oyster holdings were valued at $395,000, and accounted for just 3% of its biological assets which were worth $13.3 million before the Pacifica deal.

TransPacific Industries Group was unchanged at $8.65 after its cleaning equipment subsidiary ERS New Zealand Ltd. paid a $400,000 fine to dodge a price-fixing prosecution. The country’s biggest provider of waste oil services reached an agreement with the Commerce Commission in June this year, according to the deed of settlement obtained under the Official Information Act.

Kathmandu Holdings, the outdoor clothing retailer, rose 3.1% to $1.67, pacing gainers on the NZX 50.

Fisher & Paykel Appliances Holdings, the whiteware maker, rose 1.8% to 57 cents, Rakon Ltd., the manufacturer of crystal oscillators used in cellphones and GPS units, rose 1.7% to $1.19, and Fisher & Paykel Healthcare Corp., the respirator and breathing mask manufacturer, rose 1.6% to 3.12.

Lyttelton Port Co., which operates the South Island's biggest port, rose 0.4% to $2.26 after it talked down media reports that it faces an insurance bill of between $50 million and $200 million, saying it doesn't have a clear view on the value of the claim. The South Island's biggest port suffered extensive damage after the 7.1 magnitude quake, and is working with insurers to assess the cost.

(BusinessDesk)

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