MARKET CLOSE: NZ stocks rise, led by Xero; Summerset falls   12 Aug 2014

Article - BusinessDesk

MARKET CLOSE: NZ stocks rise, led by Xero, ANZ; Summerset drops on 1H earnings

By Suze Metherell

Aug. 12 (BusinessDesk) – New Zealand stocks rose, while lagging behind a global rally, as investors waited on reporting season to justify market gains. Xero led the benchmark index higher, while Summerset Group fell after reporting first-half profit.

The NZX 50 Index rose 6.175 points, or 0.1 percent, edging up from a four-month low to 5055.808. Within the index, 26 stocks rose, 17 fell and seven were unchanged. Turnover was $101 million.

Stocks across the Asia-Pacific followed Wall Street higher, on easing tensions in Ukraine ahead of a proposed Red Cross mission and optimism US bombing will help push back militants in Iraq. Australia’s S&P/ASX200 Index climbed 1.2 percent in afternoon trading, Japan’s Nikkei 225 edged up 0.1 percent as did South Korea’s Kospi 200 Index.

“We’re up only ever so slightly, certainly not to the degree any of the offshore markets were overnight, or Australia, we’re underperforming most of those other markets around the world,” Mark Lister, head of research at Craigs Investment Partners said. “The main reason for that is reporting season is kicking off in earnest this week so people are reluctant to take any large positions ahead of that, they’re waiting to see how things pan out.

ASX dual-listed stocks rose on Australian gains. Xero, the cloud-based accounting software firm, advanced 2.3 percent to $23.30. Australia and New Zealand Banking Group climbed 2.1 percent to $36.40. Westpac Banking Group increased 1.4 percent to $36.80.

Summerset was the worst performer on the day, falling 2.7 percent to $2.90. New Zealand's third-largest retirement village operator increased first-half profit 42 percent to $15.3 million in the six months ended June 30, lagging last year's first-half profit growth of 174 percent, and below Forsyth Barr’s forecast $17.5 million.

NZX paced the decline, down 2.3 percent to $1.25. The stock market operator was the first benchmark index constituent to kick off earnings season yesterday, reporting first-half profit rose 8.6 percent to $6.97 million from the same period a year earlier, below Forsyth Barr's estimate of $7.1 million.

“NZX yesterday was a little bit underwhelming, and another was Summerset today again a bit underwhelming below market expectations,” Lister said. “When your market has had quite a good run for the last couple of years and valuations are looking reasonably high any disappointment will mean that investors vote with their feet.”

SkyCity Entertainment Group fell 1.4 percent to $3.55. The casino operator is due to report tomorrow and Forsyth Barr forecasts annual earnings will fall 12 percent to $124.1 million in the year ended June 31.

Infratil fell 0.6 percent to $2.415. The infrastructure investor told shareholders it’s expecting to spend between $295 million and $365 million next year on capital projects across its infrastructure portfolio, about half last year’s $613.6 million as Australian wind farm investments by TrustPower are completed.

Fletcher Building, New Zealand’s largest listed company, advanced 1 percent to $8.90. Spark New Zealand, the telecommunications provider formerly known as Telecom Corp, fell 1.3 percent to $2.775.

Outside the benchmark index, PGG Wrightson was the best performer across all New Zealand stocks, rising 8.9 percent to a five-month high of 43 cents. The rural services firm controlled by China’s Agria Corp posted an annual profit of $42.3 million after a year-earlier loss of $306.5 million driven by a historical impairment, and held off making a forecast for 2015 because of volatile dairy prices. Sales rose to $1.2 billion from $1.13 billion.

Kirkcaldie & Stain was unchanged at $2.20. The Wellington-based department store said it has reached an agreed purchase price for its two buildings for $45.85 million with an undisclosed Wellington investor below its most recent independent valuation dated Aug. 31 of $50m and a carrying amount, as reported in its interim financial statements for the period ended Feb. 28, of $49.87 million.

(BusinessDesk)

Add a comment

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 By Rt HON WINSTON PETERS
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 By RT HON JACINDA ARDERN
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 By Hon Phil Twyford
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 By Charlotte Everett
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 By Minister Kris Faafoi
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 By RT HON JACINDA ARDERN
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 By Hon Iain Lees-Galloway
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 By RT HON JACINDA ARDERN
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 By Charlotte Everett
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 By Hon Eugenie Sage
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 By RT HON JACINDA ARDERN
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 By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more