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


MARKET CLOSE: NZ shares rise, led by Air NZ

MARKET CLOSE: NZ shares rise, led by Air NZ after FY result beats estimates

By Hannah Lynch

Aug. 30 (BusinessDesk) - New Zealand shares rose, led by Air New Zealand after its full-year profit beat estimates and the airline forecast earnings to double in 2013. Auckland Airport fell after its annual profit climbed 15 percent.

The NZX 50 Index rose 1.17 points, or 0.03 percent, to 3629.56. Within the index, 22 shares rose, 20 fell and 8 were unchanged. Turnover was about $111 million.

Air New Zealand shares rose 13.4 percent to $1.01, the highest since Nov. 23. The national carrier slated for a government selldown beat estimates with a 12 percent drop in annual profit to $71 million. That beat the consensus analyst forecast of $44.5 million.

"Air New Zealand has come through, and has been working on this for a long time - it hasn't just happened overnight," said Shane Solly, portfolio manager at Mint Asset Management. "The result was better than expected and they gave guidance of a new outlook that caught people by surprise."

Nuplex Industries rose 5.4 percent to $2.95. The stock is up about 24 percent this year. Last week the specialty chemical maker met its guidance, after the contribution from newly acquired Viverso and improved resin margins made up for falling volumes and the impact of a high kiwi dollar.

Ryman Healthcare, the retirement village operator, rose 2.7 percent to an all-time-high of $3.82. The stock has gained about 34 percent this year.

Auckland International Airport fell 1 percent to $2.58. The airport is raising its dividend policy to pay out 100 percent of underlying earnings, up from 90 percent, following a 15 percent increase in tax-paid underlying profit of $139.0 million in the year to June 30.

"The revenue was slightly below forecast and the profit was inline - it hasn't surprised the market so investors haven't reacted," said Bryon Burke, head dealer at Craigs Investment Partners. "Stocks that have been in line with forecasts haven't been treated that harshly."

Telecom, New Zealand's largest listed company, fell 0.8 percent to 2.41. Fletcher Building, the nation's largest construction company, shed 0.3 percent to $6.60.

The decline was led by Goodman Fielder, the food ingredients maker, down 3 percent to 64 cents.

Allied Farmers, the group that turned itself into a penny-dreadful stock by buying the loan books of Hanover Finance and United Finance, was unchanged on 2.5 cents. It narrowed its full-year loss to $14.1 million in the 12 months ended June 30 from $40.98 million taking smaller impairments and reducing expenses.

New Image Group, which makes colostrum-based health tonics, were unchanged on 15 cents. The company reported a full-year loss of $6.1 million in the 12 months ended June 30 after taking one-time charges to write-down its Living Nature and Sleep Time brands.


© 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>>