MARKET CLOSE: NZ shares fall, led by Kathmandu 21 Nov 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 fall led by Kathmandu; Meridian, MRP decline
By Suze Metherell
Nov. 21 (BusinessDesk) - New Zealand shares fell led by Kathmandu Holdings and paced by Warehouse Group after the retailers said their margins and sales were under pressure. Meridian Energy and MightyRiverPower declined as investors looked to crystalise recent gains.
The NZX 50 Index fell 31.136 points, at 0.6 percent, to 5495.812. Within the index, 23 stocks fell, 18 rose and nine were unchanged. Turnover was $134 million.
Kathmandu dropped 5.4 percent to $2.82 after the outdoor goods retailer told shareholders at its annual meeting in Melbourne that it expects first-half margins to shrink as it discounts more items to clear shelf space. Retailers, particularly those in the rag trade, have been struggling to produce earnings growth as international online sellers lure bargain hunters with cheaper products.
Meanwhile fellow retailer, Warehouse Group slipped 0.6 percent to $3.17 as it affirmed its expectation for a rise in annual earnings even as sales lag behind forecast heading into the key Christmas trading period.
"Kathmandu disappointed the market with guidance out of its AGM today and it's a little bit the same with the Warehouse really," said James Smalley, director at Hamilton Hindin Greene. "It's all about overheads versus squeezing margins."
Energy stocks, which have rallied to records in recent times as investors hunt yield in a low interest rate environment, fell as holders looked to book some profit from the recent gains. Meridian declined 1.4 percent to $1.73. MRP fell 1.5 percent to $2.985. Genesis Energy dropped 1.4 percent to $2.17.
"We're seeing a little bit of money come off the table after those nice rises," Smalley said. "The market had been up four days in a row so you're always going to have a day where investors think well enough is enough let's take a little bit off."
Fisher & Paykel Healthcare fell from a record, declining 2.4 percent to $5.62.
Ryman Healthcare rose 1 percent to $8.19. New Zealand's largest listed retirement village builder and operator posted a 13 percent gain in underlying first-half profit to $66.3 million and signaled it's on track to meet its target of a 15 percent increase in annual earnings.
Rival retirement village Summerset Group Holdings rose 1.1 percent to $2.74 and Metlifecare was unchanged at $4.35.
Arvida Group, the latest retirement village operator looking to join the bourse, has raised the full $75 million sought through an initial public offering with its shares set in the middle of its indicative range at 95 cents apiece, following strong demand from New Zealand and Australian institutions and listed companies.
NZX rose 1.6 percent to $1.24 after New Zealand's stock market operator signed a memorandum of understanding with the Bank of China to develop financial products, with a focus on the agricultural sector and capital markets.
A2 Milk Co was unchanged at 60 cents. The milk marketer has agreed to make China State Farm Holdings Shanghai the sole importer of its a2Platinum infant formula while a2 will take over the distribution in Asia's largest economy. The board has appointed David Hearn as deputy chairman following the retirement of Perry Gunner.
New Zealand Oil & Gas rose 1.5 percent to 67 cents. Bill Houston, the energy explorer’s general manager of exploration has resigned less than a year after he took up the role. The company is planning to return about $60 million to shareholders, using surplus cash as production ramps up at the Tui field, cancelling one in five of its shares to return 75 cents per cancelled share.
Fletcher Building, the construction and building supplies company, dropped 0.5 percent to $8.40. Spark New Zealand, formerly Telecom Corp, fell 1.2 percent to $3.19.
Outside the benchmark index, Metro Performance Glass, which has more than half of New Zealand's glass processing market, rose 0.5 percent to $1.95 after it said it's on track to meet full-year prospectus forecasts as sales rose 13 percent to $31.6 million in its first two months as a listed company.
Cavalier Corp tumbled 18 percent to a more than 20-year low of 60 cents. The carpet maker and exporter expects its 2015 full-year earnings to be between $1 million and $4 million, after last month flagging normalised annual profit in the 2015 financial year will probably fall short of its forecast for a "modest increase" to the $5.8 million result it posted in 2014. It will detail its guidance at its annual meeting next Tuesday.
(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