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

Royal succession laws come into force

26 Mar 2015 News
Legislation modernising rules applying to Royal succession to the throne came into force today in New Zealand and in the 16 Realms... more

McCully visits Iraq ahead of NZ deployment

24 Mar 2015 News
  Foreign Minister Murray McCully travelled to Baghdad yesterday for talks with Iraq’s Prime Minister Mr Haider al-Abadi... more

Business

NZ milk powder futures drop as Fonterra lifts GDT volumes

27 Mar 2015 Business News
Article - BusinessDesk   NZ milk powder futures drop as Fonterra lifts GDT volumes, signalling prices will fall By Tina ... more

NZ commercial property lending less risky now: RBNZ

26 Mar 2015 Business News By Fiona Rotherham
  NZ commercial property lending less risky now due to lower debt funding March 26 (BusinessDesk) - The Reserve Bank said New... more

Living

2degrees lights up Auckland Harbour Bridge in World First

13 Mar 2015 Lifestyle
Fusing light, music, mobile and one of Auckland’s most recognisable landmarks together – 2degrees launched another Kiwi... more

Third Thursday Set to Groove

9 Mar 2015 Lifestyle
The sounds of legendary jazz musician Charles Mingus is set to raise the beat of Wellington’s waterfront on 19 March, when the... more

Property

NZ house prices rise 3.6% in February

12 Mar 2015 Property By Tina Morrison
  NZ house prices rise 3.6% in February, led by a 14% jump in Auckland prices March 12 (BusinessDesk) - New Zealand residential... more

Revealed: Auckland's cheapest suburbs

9 Mar 2015 Property
Many home buyers face long commute to Auckland jobs as they move to Wellsford, Pokeno and Hamilton. Only six areas of Auckland still... more

Migration

PM plays down claim war criminals are living in NZ

2 Mar 2015 Migration
Prime Minister John Key says he is not aware of any suspected war criminals from the former Yugoslavia in New Zealand. The claim that... more

NZ migration rose to record in 2014

30 Jan 2015 Migration By Tina Morrison
  NZ migration surged to record in 2014, helped by robust economy Jan. 30 (BusinessDesk) - New Zealand migration surged to a... more

Travel

Foss welcomes agreement for rental vehicle code

17 Mar 2015 Travel & Tourism
Associate Transport Minister Craig Foss is welcoming a move by the rental vehicle industry to establish a Code of Best Practice to... more

Productive discussions on Queenstown’s tourism workforce

6 Mar 2015 Travel & Tourism
Sustainable workforce solutions were at the centre of discussions between Government Ministers and tourism industry representatives... more

Sport

ICC World Cup 2015: Sunday doesn’t guarantee success but it gives the greatest chance, says McCullum

28 Mar 2015 Cricket
Q. Who won the real battle of big brother against little brother?BRENDON McCULLUM: I think he won, but I definitely had some mad... more

ICC World Cup 2015 Match official appointments for final announced

28 Mar 2015 Cricket
The International Cricket Council today announced the match official appointments for the final of the ICC Cricket World Cup 2015,... more

Columns

ICC World Cup 2015: STEPHEN FLEMING: YES, NEW ZEALAND CAN!

28 Mar 2015 Opinion
Former New Zealand captain says the team will be focusing on enjoying themselves, knowing they are part of something that will be the... more

Gordon Campbell on a funeral in Asia and Northland

27 Mar 2015 Opinion By Gordon Campbell
  Gordon Campbell on a funeral in Asia, the Northland by-election, and news priorities Supposedly, New Zealand’s destiny... more

Kiwi Success

Tower names Seniors Money's Brett Wilson as CFO

18 Mar 2015 Appointments
  Tower names Seniors Money's Brett Wilson as CFO, replacing Boggs March 18 (BusinessDesk) - Tower, the listed general insurer,... more

Kiwi start-up Glassjar launches payments app in the US

6 Mar 2015 People
Glassjar, the kiwi software start-up whose app provides people an easy way of sharing bills, has launched in the United States. The... more

Recruitment

NZ Government moves to strengthen employment standards

26 Mar 2015 Recruitment
Workplace Relations and Safety Minister Michael Woodhouse today announced a package of measures to strengthen enforcement of minimum... more

RESEND: 63% of Warehouse permanent staff now on career wage

20 Mar 2015 Recruitment By Fiona Rotherham
  RESEND: Warehouse says 63% of permanent staff now on 'career retailer wage' (Fixes fourth paragraph to show Warehouse is... more