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


MARKET CLOSE: NZ shares rise; Pumpkin Patch, retailers gain

MARKET CLOSE: NZ shares rise: Pumpkin Patch, retailers gain

Sept. 3 (BusinessDesk) - New Zealand shares rose, led retailers such as Pumpkin Patch, Kathmandu and Warehouse Group after earnings season showed they’ve managed to keep costs under control if a competitive market for the consumer dollar. Tourism Holdings soared on merger plans.

The NZX 50 Index rose 2.35 points, or 0.1 percent, to 3669.03 in the first trading day for September. Within the index, 23 shares rose, 17 fell and 10 were unchanged. Turnover was about $104 million.

Pumpkin Patch, the children's clothing retailer, rose 9.1 percent to $1.20. The stock has climbed almost 20 percent since posting full-year earnings last month that beat estimates. Warehouse Group, the biggest retailer on the NZX 50, gained 0.7 percent to $2.82 ahead of its full-year results on Friday. Kathmandu, the outdoor clothing retailer that posts its results on Sept. 20, increased 2.3 percent to $1.82.

"The retailers that have reported have reported well," said Greg Easton, investment advisor at Craigs Investment Partners. "They have all managed their costs and inventories well and increased the bottom line."

"There is a lot of hunger out there for yield so the fact they can perform in this environment is comfort for investors," he said.

Tourism Holdings rose 19 percent to 68 cents, a level it hasn’t exceeded since July last year, after the campervan rental company said it will acquire KEA Campers and United Campervans in a $69.5 million deal that will double its per-share earnings in 2014. Shares in the Auckland-based company have shed about 3 percent this year.

"The market is buying into the story though Tourism Holdings doesn't have a great track record for generating value," Easton said. "It is by no means a done deal - they have been fairly consistently up today - as analysis comes through overnight that could push it up further."

Skellerup Holdings, the industrial rubber products supplier that posted a record annual profit, climbed 0.6 percent to $1.65. The stock has gained 21 percent this year. The company said today it has tapped Rakon executive Graham Leaming as its chief financial officer.

Shares in Rakon, the communications components maker which dropped out of the NZX 50 Index in June, rose 2.3 percent to 45 cents. Rakon's annual meeting will be held on Friday.

The decline was paced Sky Network Television down 0.8 percent to $5.02. The Commerce Commission says it needs to dig a little deeper into the pay-TV operator's content arrangements with internet service providers after completing the first stage of its investigation. Its shares have shed about 4.5 percent so far this year.

"Sky TV will have to wait - that level of uncertainty is not investors’ best friend," Easton said.

Fletcher Building, the construction and building materials group, fell 0.8 percent to $6.60 even after it announced it has agreed to sells its New Zealand electrical products distribution business, Corys Electrical, to Sonepar SA, a global distribution company for almost $20 million.

Telecom, the largest company on the NZX, shed 0.6 percent to $2.445.

The decline was led by Goodman Fielder, the food ingredients maker, down 4.5 percent to 64 cents.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Consumer NZ: Buy-now, Pay-later Raking In $10m+ In Late Fees Annually

A Consumer NZ survey has found buy-now, pay-later services are costing shoppers more than $10 million a year in late fees. Close to four out of 10 Kiwi consumers use buy-now, pay-later services, such as Afterpay, Laybuy and Zip... More>>

Westpac: Catherine Mcgrath Appointed New Zealand CEO

Westpac Group CEO Peter King and the Westpac New Zealand Board today announced the appointment of Catherine McGrath as Chief Executive Officer, Westpac New Zealand... More>>

Amazon: AWS To Open Data Centres In New Zealand

Today, Amazon Web Services (AWS), announced plans to open an infrastructure region in Aotearoa New Zealand in 2024. The new AWS Asia Pacific (Auckland) Region will consist of three Availability Zones (AZs) and join the existing 81 Availability Zones across 25 geographic AWS Regions at launch... More>>


Statistics: Surge In Imports Results In Record Monthly Trade Deficit
Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today. Exports were little changed, down $42 million. "This is a larger deficit than normal because of higher values for imports.. More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>

Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>