MARKET CLOSE: NZ shares join global sell off 1 Aug 2014
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
MARKET CLOSE: NZ shares join global sell off; Gentrack plunges on profit warning
By Suze Metherell
Aug. 1 (BusinessDesk) - New Zealand shares fell, led by Xero, A2 Milk Co and Pacific Edge, joining a global sell off as geopolitical risk spooked investors.
Gentrack Group plunged below its offer price after saying it would miss its prospectus forecast for sales and profit barely a month after its $99 million initial public offering.
The NZX 50 Index shed 58.058 points, or 1.1 percent, to a two-week low of 5109.931. Within the index, 43 stocks fell, three rose and four were unchanged. Turnover was $101 million.
Stocks across Asia followed Wall Street lower, with Japan’s Nikkei 225 index down 0.6 percent in afternoon trading, Australia’s S&P/ASX 200 falling 1.3 percent and Hong Kong’s Hang Seng down 0.5 percent. Overnight the tech-heavy Nasdaq Composite Index plunged 2.1 percent as conflict between Israel and Palestine escalated, investors fretted over the Ukrainian standoff between Russia and the West, and Argentina faced default on its foreign-currency debt.
So-called momentum stocks led the decline on the local bourse. Xero fell 4.4 percent to $24.30. A2 Milk Company shed 3.1 percent to 63 cents. Biotech company Pacific Edge fell 1.3 percent to 75 cents. Diligent Board Members Services dropped 1.5 percent to $4. Outside the benchmark index, Wynyard Group fell 2.4 percent to $2 and SLI Systems fell 2.9 percent to $1.34.
"The geopolitical headwinds in Gaza and also Russia and Ukraine, have been looked past for the last couple of weeks, but the Argentinean default on top of that, I think individually it could be brushed aside by the market," said Greg Smith, head of research at Fat Prophets. "But collectively its resulted in a pull back and risk coming off the table."
Gentrack Group plunged 13 percent to $2.24, falling below its June $2.40 IPO price for the first time. The airport and utility software company said profit in the 12 months ended Sept. 30 is now expected to be $2.5 million to $2.8 million - as much as 32 percent below the $3.7 million forecast in a prospectus first published on May 26, as a customer dispute and a delayed contract upgrade shave up to 6.2 percent off annual sales.
"When you've had a new float, and then disappointed on prospectus forecasts the market is quite scathing," Smith said. "We've had a plethora of floats, and some have held up better than others, but the higher growth plays have potentially a lot more downside."
Kathmandu Holdings led the NZX 50 Index's three gainers, advancing 1.2 percent to $3.37, after the outdoor goods retailer said a cold snap last month in Australia and New Zealand generated more sales than anticipated when the outdoor apparel and equipment retailer announced a profit warning in June. The Christchurch-based company said earnings before interest and tax was $62.5 million to $65.5 million in the year ended July 31, from $63.4 million the year earlier, an improvement from the company's expectation on June 24 that Ebit would likely fall 10 to 15 percent.
Fletcher Building, New Zealand's largest listed company, fell 2.3 percent to $8.91. Air New Zealand, the nation's carrier, 3.8 percent to $1.905.
Argosy Property fell 0.5 percent to $1. The property investor sold its Waitakere Mega Centre in Henderson, Auckland, for the $45.8 million book value as part of its strategy to reduce exposure to retail property.
Outside the benchmark index, Lyttelton Port Co jumped 24 percent to $4.10 after Christchurch City Holdings, the city's infrastructure investment arm, says it will offer to buy the 20 percent of Lyttelton Port it doesn't already own and has a lock-up agreement for Port Otago's 15.5 percent holding.
A formal takeover offer at $3.95 a share, with the promise of a special 20 cent dividend, is likely to be made next week, the CCH said. On completion the port company would be delisted.
Pumpkin Patch jumped 11 percent to a three-week high of 41 cents after the childrenswear retailer said it had renewed a $75 million banking facilities with ANZ.
Hellaby Holdings rose 1 percent to $2.83, after the diversified investment company said it take a $26.9 million impairment against its 2014 earnings to write off goodwill on its shoe stores Hannahs and Number One Shoes, after two years of poor performance. The Christchurch-based company said earnings before interest and tax was $62.5 million to $65.5 million in the year ended July 31, from $63.4 million the year earlier.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more