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

 

MARKET CLOSE: NZ shares gain, led by Tower; AIA falls

MARKET CLOSE: NZ shares gain led by Tower; Auckland Airport falls on earnings

By Suze Metherell

Aug. 26 (BusinessDesk) - New Zealand shares rose on optimism Tower has more scope to return capital after making progress meeting earthquake claims in Canterbury, while Fisher & Paykel Healthcare rose to a record on optimism it will benefit from a falling kiwi dollar.

The NZX 50 Index rose 12.887 points, or 0.2 percent, to 5195.630. Within the index, 24 stocks rose, 17 fell and nine were unchanged. Turnover was $83 million.

Tower climbed 2 percent to a 13-month high of $2.00. The general insurer said last week that the minimum solvency required by the Reserve Bank has fallen to $50 million from $80 million. It has previously flagged a capital return once Canterbury claims are resolved and will have funds on hand including $36 million from the sale of its remaining life insurance business.

"Most people believe that $30 million will be returned to shareholders in some way, so it adds more credibility that the balance sheet is very, very stable," said Rickey Ward, NZ equity manager at JB Were. "It's very strong in fact - no debt, excess capital and now they've got more capital."

F&P Healthcare, which gets more than half its sales in US dollars, rose 1.8 percent to $5.00, the highest in at least two decades.The New Zealand dollar has fallen to a six-month low against the US currency, giving companies with large currency exposure some relief, and in turn boosting their share price, Ward said.

Nuplex Industries led the index higher, gaining 2.3 percent to $3.08. The chemicals manufacturer exports across Australia, Asia and Europe. Fletcher Building, which generates half its income in Australia, climbed 1.1 percent to $9.25.

Earnings season continued today, with five listed companies reporting their results, helping to provide support to the benchmark index which has gained 9.8 percent since the start of the year.

"It's always challenging and very difficult to figure out if your market is undervalued or overvalued," said Ward. "We haven't seen too many companies disappoint on expectations for earnings but it comes down to your appetite for risk and what price you want to pay for future earnings."

Auckland International Airport fell 2.4 percent to $3.66 after the country’s main gateway reported an 11 percent gain in full-year underlying earnings to $169.9 million, broadly in line with guidance it gave in the first half, as aeronautical charges led a gain in revenue that outpaced growth in expenses.

"It was slightly up on what the market was expecting," said Ward. "It's more the outlook statement - they're promoting a full-year profit roughly in line with what they delivered this year, and based on that you're paying a big price for it."

New Zealand Oil & Gas fell 0.6 percent to 78 cents after the exploration company, which has interests in the Tui and Kupe fields, posted a 61 percent drop in annual profit to $10.1 million, reflecting a "sharp" increase in exploration costs and some foreign exchange losses on its US dollar holdings.

Spark New Zealand, formerly known as Telecom, rose 1.4 percent to $2.94.

Outside the benchmark index, Tourism Holdings jumped 9.5 percent to a near-six-year high of $1.39 after New Zealand and Australia's largest holiday vehicle rental business said annual profit soared 192 percent to $11.1 million, beating its July guidance, as profitability improves across its New Zealand, Australian and US units. The company will pay a final dividend of 6 cents, bringing its full-year dividend to 11 cents.

SLI Systems climbed 5.7 percent to $1.48. The Christchurch-based the search engine software developer reported a smaller loss of $5.7 million, compared to the $7.2 million it flagged in its prospectus last year.

Wynyard Group fell 3.6 percent to $2.15 after the company, which makes security software, reported a wider first-half loss of $10.2 million, from a loss of $3.1 million a year earlier, as it spent more on its expansion plans and said sales in the full-year are dependent on the timing of major contracts.

Acurity Healthcare Group was unchanged at $6.65. Its independent directors have unanimously accepted Connor Healthcare's takeover offer for the 29 percent of the company it doesn't own, after Connor boosted its offer by 75 cents per share to $7.25 a share.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Snail's Pace: Aucklanders Face Frustrating Commute Over Harbour Bridge

Journeys into Auckland's CBD took longer than usual as traffic banked up around the damaged Harbour Bridge. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO:

SAFE: Live Export Ship Carrying 5,800 New Zealand Cows Goes Missing In East China Sea

Livestock carrier Gulf Livestock 1 sent a distress signal at 4:45am NZT yesterday in the East China Sea. The area is affected by Typhoon Maysak. At 4pm a patrol plane spotted a lifeboat - with no people in it - and a man in lifejacket nearby. The ship ... More>>

ALSO:

FMA: Kiwisaver Fees Don't Match Performance

The Financial Markets Authority (FMA) today published an independent report into the passive and active investment management styles [i] used by KiwiSaver providers. The FMA commissioned MyFiduciary to test the extent that KiwiSaver providers were ... More>>