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

 

MARKET CLOSE: NZ stocks slip on global outlook; Rakon leads

MARKET CLOSE: NZ stocks slip on global recession fears; Rakon paces decliners, Vector rises

By Jason Krupp

Sept. 5 (BusinessDesk) - New Zealand stocks fell, kicking off a slump on Asia Pacific markets after U.S. jobs growth stalled in August and on signs Europe's debt crisis may be worsening, sparking fresh fears that the global economy is headed for another recession. Rakon Ltd. paced decliners and Vector Ltd. rose.

The NZX 50 Index fell 10.73 points, or 0.3%, to 3,292.48, its lowest level since Aug. 24. Within the index, 25 stocks fell, 11 rose, and 14 were unchanged. Turnover was $105.7 million.

The kiwi dollar fell to 84.42 U.S. cents as at 5pm, paring losses when it traded at 84.36 cents at 8am, though still down from 85.03 cents on Friday in New York. It fell to 72.66 on the trade-weighted index of major trading partners' currencies from 72.88 this morning.

Asia Pacific markets were mired in the red in afternoon trade on Monday, with the Nikkei 225 Index down 1.9%% to 8,781.94, Hong Kong's Hang Seng Index down 2.2% to 19775.01, and Australia's S&P 200 Index down 2.5% to 4,137.60.

Rakon, the maker of crystal oscillators used in electronic devices, fell 2.5% to 78 cents, with the stock getting hammered for a fourth day after it said annual operating profit could fall as much as 44% for the year ending March 2012 if the New Zealand dollar remains are current level. The stock has lost 8.2% since the announcement on Aug. 31.

With earnings projections "normally the rule is three strikes and you’re out and they've a few more than that," said David Price, a broker at Forsyth Barr in Wellington. "Their profit forecasting and hitting target hasn't been very good, so people are just moving on, although it's unfortunate that it’s the currency headwind that they're facing."

Local banking stocks fell, taking their lead from their listed parents in Australia, with Westpac Banking Corp., the Australian lender, falling 2.8% to $25.04 on the NZX. Australia & New Zealand Banking Group, the country's biggest lender, fell 2.6% to $24.35.

PGG Wrightson Ltd., the rural services company, fell 2.2% to 45 cents. The government today announced that it was withdrawing the company's finance unit from the Crown Deposit Guarantee scheme after it was acquired by would-be bank
Heartland New Zealand, who's guarantee will now cover the PGG Wrightson Finance Ltd.

Heartland, who also announced that its guarantee had been extended to December 31, was unchanged at 57 cents.

Vector, the Auckland electricity and gas distributor, rose 2% to $2.52, leading gainers on the exchange. The stock is rated as 'hold' according to the consensus view off five analysts polled by Reuters.

New Zealand Oil & Gas Ltd., the energy exploration and production company, rose 1.5% to 68 cents.

Sky Network Television Ltd., the pay TV operator, rose 1% to $5.86, with stock continuing to attract investor attention after the company's board declared final dividend of 10.5 cents per share plus a special dividend of 25.0 cents per share.

Property for Industry, the specialist investor in commercial and industrial properties, rose 0.9% to $1.18.

Port of Tauranga Ltd., the country biggest port, rose 0.8% to $9.96.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>


Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>

LPG Association: Renewable LPG Achieves Emissions Budgets With No Need To Ban New LPG Connections

Renewable LPG can supply New Zealand’s LPG needs and achieve the emissions reductions proposed by the Climate Commission without the need to ban new connections, a new study shows. The investigation, by leading consultancy Worley, was prepared for the ... More>>