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

 

MARKET CLOSE: NZ shares gain slightly

MARKET CLOSE: NZ shares gain slightly, Tegel bounces while Air NZ drops on new competition

By Sophie Boot

Oct. 3 (BusinessDesk) - New Zealand shares gained slightly in light trading, led by Tegel Group Holdings and Meridian Energy while Air New Zealand dropped.

The S&P/NZX50 Index rose 11.4 points, or 0.2 percent, to 7,372.49. Within the index, 27 stocks rose, 16 fell and seven were unchanged. Turnover was $100.5 million.

Tegel Group Holdings was the best performer on the index, up 5.3 percent to $1.59. The poultry group, which was taken public by private equity firm Affinity Equity Partners in May this year, rose 9 percent in its NZX debut and traded as high as $1.78 in August, but dropped to $1.50 yesterday. Across the Tasman, Ingham Group, which is the largest chicken producer in Australia and the second-largest in New Zealand, is heading for an initial public offering and ASX listing.

"Obviously Inghams is looking to float on the Australian index, potentially some institutions are making some room on their books to take a bit of Inghams," Grant Williamson, director at Hamilton Hindin Greene, said. "Over the past two weeks in particular, it came in for a bit of selling, possibly so institutional investors could take up on a new float."

Metro Performance Glass gained 3.7 percent to $2.22, Meridian Energy rose 3.1 percent to $2.68, and Westpac Banking Corp advanced 1.8 percent to $31.75.

Early in the day, the index had seen some profit taking, but the Australian index was strong leading the local index to claw back some losses, Williamson said.

"We have seen a bit of a turnaround particularly this afternoon. Fletcher Building and Air New Zealand are holding the index back a little bit today while the other blue chips are trading quite nicely, and the electricity stocks are mostly higher, particularly Meridian which has seen a little bit of a rebound this afternoon as investors are looking for stocks which have been sold off."

Air New Zealand was the worst performer, down 2.2 percent to $1.82. Hainan Airlines today became the latest international airline to announce a new route to New Zealand, with a service to Auckland from the Chinese city of Shenzhen. On Friday, Air New Zealand chief executive Christopher Luxon reiterated his warning to shareholders that increased competition would lead to a fall in revenue in the current financial year.

Auckland International Airport was unchanged at $7.35, and has gained 28 percent this year, benefiting from the increased competition, while the national carrier has declined 30 percent, contending with a recovering oil price as well as new competitors.

Fletcher Building fell 1.4 percent to $10.58, NZX dropped 0.9 percent to $1.05, and Scales Corp dropped 0.9 percent to $3.20.

Outside the main index, ERoad fell 8.6 percent to $1.70. The logistics and fleet management software and hardware developer said its first-half sales were overall in line with its expectations, though its US growth market numbers disappointed. ERoad said it will give more details at its first-half results launch in November, and will begin providing total contracted unit data quarterly to keep investors updated.

SLI Systems dropped 8 percent to 46 cents, a record low. Investors remain cool on the prospects for companies chasing rapid growth in foreign markets. The shares have slumped 44 percent since the e-commerce software seller reported a narrower annual loss in August as it overhauled its business in the wake of losing three major customers.

Hellaby Holdings was unchanged at $3.32. The company has appointed independent adviser Grant Samuel to prepare a report to shareholders on what the board says is an "opportunistic" takeover bid that doesn't represent fair value. Victoria-based company Bapcor is offering $3.30 a share, entering into lock-up agreements with Salt Funds Management, Accident Compensation Corp, and Hugh Green Holdings’ Castle Investments, securing almost 30 percent of the NZX-listed firm.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:

Electricity: New Zealand Remains In Top 10 For Energy Balance

The World Energy Council’s Energy Trilemma Index has become part of the energy dialogue both globally and in New Zealand. The Index illustrates the need for countries to balance energy security, energy equity and environmental sustainability. New Zealand ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: