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


MARKET CLOSE: NZ shares fall from highs ahead of earnings

MARKET CLOSE: NZ shares fall from highs ahead of earnings; Telecom, Ryman dip

Aug. 8 (BusinessDesk) - New Zealand shares fell in the lead up to earnings season amid speculation prices have strengthened enough already to reflect the outlook for stronger earnings. The decline was paced by Telecom, Ryman Healthcare and Mainfreight.

The NZX 50 Index fell 3.02 points, or 0.1 percent, to 3581.79. Within the index, 22 stocks rose, 19 fell and nine were unchanged. Turnover was $99 million.

New Zealand’s listed companies will lift normalised profit by a median 7 percent, based on Forsyth Barr’s forecasts for 43 companies that it follows. Sales are expected to rise by 3.8 percent.

"Leading into the results season people are thinking about where the numbers end up," Shane Solly, portfolio manager at Mint Asset Management. "There is a little more profit taking - that is not surprising."

Telecom, the largest company on the exchange, fell 2.6 percent to $2.66 after rising to its highest level since August 2008 yesterday. Telecom is scheduled to release its full-year results on Aug.24. The telecommunications company's normalised earnings are expected to rise about 37 percent to $330.2 million, according to brokerage Forsyth Barr.

Mainfreight fell 1.6 percent to $9.20 before its earnings are released tomorrow.

"People are obviously looking to see what the global slowdown has meant," Solly said. "We are seeing a bit of profit taking ahead of that result."

Shares in Ryman Healthcare, New Zealand's largest retirement village operate, fell 1.4 percent to $3.56.

Fletcher Building, the largest listed construction company, rose 1.4 percent to $6.43.

The decline was led by Cavalier, the carpet and wool scouring group, which dropped 3.1 percent to $1.58.

Michael Hill, the listed jewellery maker, increased 2.9 percent to a $1.05, the highest in more than a month. The stock has gained 17 percent so far this year. Pumpkin Patch, which sells children's clothing, advanced 1.1 percent to 91 cents, while Hallenstein Glasson Holdings, the clothing retailer, rose 0.5 percent to $4.28.

"It is sign consumers are feeling more confident to put their hands into their pockets - spending money on smaller-ticket items," Solly said.

The gainers were led by OceanaGold, which operates the Macraes gold mine near Dunedin, up 7.9 percent to $2.86. Goodman Fielder, the food manufacturer, rose 4.9 percent to 64 cents. Trade Me Group, the popular auction site, rose 1.1 percent to $3.77.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Barfoot and Thompson: Auckland Housing Prices Shrug Off Winter Concerns

Auckland house prices shrugged off the normal winter downturn, concerns about increasing prices and warnings of possible future interest rate rises in July.
“Mounting concerns about the prices being paid and possible future interest rate increases did nothing to dampen July trading... More>>

Stats NZ: Sharp Falls In Unemployment And Underutilisation

The seasonally adjusted unemployment and underutilisation rates fell to 4.0 and 10.5 percent, respectively, in the June 2021 quarter, Stats NZ said today. The unemployment rate continued to fall from its recent peak of 5.3 percent in the September 2020 quarter... More>>

FIRST Union: Do Shareholders Realise Marsden Point Conversion Could Cost More Than Half A Billion Dollars?

FIRST Union, the union representing workers at Refining NZ, are querying whether shareholders voting on Friday on whether to convert the Marsden Point refinery to an import-only terminal realise the conversion could cost $650-700 million dollars... More>>

Transport: July 2021 New Vehicle Registrations Boosted By EV Rebate Scheme
Motor Industry Association Chief Executive David Crawford says that July 2021 sales of new vehicles were boosted by the recently introduced rebate scheme. July 2021 registrations were 15,053 units compared to 12,263 units for July 2020... More>>

ASB: New Support Finder Tool Helps Connect Customers With Thousands In Government Support

ASB research alongside benefit numbers from the Ministry of Social Development shows an increased number of Kiwis are struggling financially, and many may not be aware they’re eligible for government support... More>>

Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>