MARKET CLOSE: NZ shares fall; Telecom departs NYSE   8 Jun 2012

New Zealand shares fell, paced by Telecom as the biggest company on the bourse said it would delist its NYSE-traded American depositary receipts and that it would meet profit guidance by cutting costs. Steel & Tube, which is to drop out of the NZX 50 Index this month, rebounded.

The NZX 50 fell 24.48 points, or 0.7 percent, to 3449.47. Within the index, 21 stocks fell, 22 rose and seven were unchanged. Turnover was $99.7 million.

Telecom dropped 2.6 percent to $2.43. Among cost cutting measures, the company will delist its ADRs from the New York Stock Exchange, effective July 19.

“Investors are viewing it as a negative,” said Michael Milne, investment adviser at Craigs Investment Partners. “Fletchers, Telecom and the blue chips are the sort of companies that international investors tend to hold.”

Chorus, the network company spun off from Telecom in November, fell 1.9 percent to $3.14.

Shares in New Zealand Oil & Gas rose 2.7 percent to 77 cents after the energy explorer said it expects to pay a fully imputed dividend of 6 cents per share this financial year. The company had received a number of informal questions on its intention for the year.

Warehouse rose 0.8 percent to $2.53 after the country's biggest listed retailer was granted approval to delist from the Australian stock exchange. The company wants to quit the ASX to keep a lid on its costs.

Air New Zealand shares rose 1.2 percent to 86 cents after trans-Tasman rival Qantas was put on rating watch by Standard & Poor's after the Australian airline said it expects to post an annual loss of A$450 million in the 2012 financial year. Qantas has an investment grade BBB rating, and its shares fell 9 percent to 96.5 Australian cents on the ASX in afternoon trading.

Shares in Diligent Board Member Services rose 0.6 percent to $3.52 and Xero gained 4.4 percent to $4.49 as investors continued to rally behind the two newest entrants in the benchmark NZX 50 index. The tech companies will officially join the index from June 18, when they replace manufacturers Rakon, which was unchanged at 48 cents today, and Steel & Tube, which gained 2.4 percent to $2.11 today.

Kathmandu, the outdoor equipment chain, dropped almost 4 percent to $1.45. Skellerup Holdings, which makes rubber goods and milking equipment, fell 2 percent to $1.38.

(BusinessDesk)

Add a comment

Bookmark and Share

News

Predator Free NZ 2050 to be a massive team effort

25 Jul 2016 Environment
New Zealand Government Hon Steven Joyce Minister of Science and Innovation Hon Nathan Guy Minister for Primary Industries Hon Ma... more

Minister clarifies China trade issue

25 Jul 2016 News
New Zealand Government Hon Todd McClayMinister of Trade 25 July 2016   Minister clarifies China trade issue Trade Minister Todd... more

Business

PM censures Trade Minister for 'head of a pin' answers

25 Jul 2016 Business News By Pattrick Smellie
Article - BusinessDesk Monday 25 July 2016 05:13 PM PM censures Trade Minister for 'head of a pin' answers on China trade ... more

Consultation for FMA, XRB, Companies Office funding

25 Jul 2016 Business News
New Zealand Government   Hon Paul Goldsmith Minister of Commerce and Consumer Affairs 25 July 2016 Consultation for FMA... more

Living

Young New Zealanders Making Films For Good

18 Jul 2016 Lifestyle
The Outlook for Someday Young New Zealanders Making Films For Good What does sustainability mean to you? Since 2007 The Outlook for... more

Review: NZ's Pitch Black - live in London

8 Jul 2016 Entertainment By Charlotte Everett
20 years after their debut at The Gathering, Pitch Black have satiated a packed venue of fans at London’s Oslo, in... more

Property

House prices to peak next year on new supply

25 Jul 2016 Property By Paul McBeth
Article - BusinessDesk Monday 25 July 2016 House prices to peak next year on new supply, lower migration: Infometrics July 25... more

All five leading retail banks require 40% deposit

21 Jul 2016 Property By Fiona Rotherham
Article - BusinessDesk Thursday 21 July 2016 04:55 PM UDATE: All five leading retail banks require 40% deposit from property ... more

Migration

Kiwis could be affected by tighter UK rules

30 Mar 2016 Migration By Audrey Young
British High Commissioner Jonathan Sinclair is defending changes to skilled migrant rules for Britain but suggests they won't affect... more

Immigrants' attitudes to corruption worries SFO

17 Feb 2016 Migration By Sophie Boot
Feb. 17 (BusinessDesk) - New Zealand's record inbound migration has undermined the country's squeaky-clean reputation because of an... more

Travel

NZ guest nights fell in May

12 Jul 2016 Travel & Tourism By Tina Morrison
Article - BusinessDesk NZ guest nights fell in May, snapping 25 consecutive monthly gains July 12 (BusinessDesk) - New Zealand guest... more

China's Tianjin Airlines eyes Auckland service

11 Jul 2016 Travel & Tourism
Article - BusinessDesk Monday 11 July 2016 03:36 PM China's Tianjin Airlines eyes Auckland service By Edwin Mitson July 11... more

Sport

Core group of All Blacks Sevens players re-sign with New Zealand Rugby

25 Jul 2016 Rugby
The core of this year’s All Blacks Sevens squad headed by veterans DJ Forbes and Tim Mikkelson will anchor the side through the... more

Emirates Team New Zealand appoints Southern Spars to build 2017 America's Cup boat

25 Jul 2016 Sailing
Southern Spars today announced it has been appointed to build Emirates Team New Zealand’s boat for the 35th America’s... more

Columns

Gordon Campbell on Tony Blair and the Chilcot Report

7 Jul 2016 Opinion
Column - Gordon Campbell Gordon Campbell on Tony Blair and the Chilcot Report | werewolf more

Gordon Campbell on our refugee response, and a TPP rewrite

14 Jun 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on our paltry refugee response and a brazen US rewrite of the TPP First published at... more

Kiwi Success

New Supreme Court and Court of Appeal appointments

13 Jul 2016 Appointments
New Zealand Government Hon Christopher FinlaysonAttorney-General 13 July 2016 New Supreme Court and Court of Appeal ... more

Awards champion public service excellence

7 Jul 2016 People
New Zealand Government   Hon Paula Bennett Minister of State Services 7 July 2016 Awards champion public service... more

Recruitment

Fletcher chases 100 ex-pat Brits

7 Jul 2016 Recruitment By Paul McBeth
Article - BusinessDesk Fletcher chases 100 ex-pat Brits as construction sector faces capacity constraints July 7 (BusinessDesk) -... more

Zero-hour contracts gone, PPL extended

10 Mar 2016 Recruitment
New Zealand Government Hon Michael Woodhouse Minister for Workplace Relations and Safety 10 March 2016 Zero-hour contracts gone, PPL... more

s