MARKET CLOSE: NZ shares fall; Z plunges after placement 1 Oct 2015
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; Z plunges after placement, Infratil falls
By Suze Metherell
Oct. 1 (BusinessDesk) - New Zealand shares fell, led by a sharp drop and heavy trading in Z Energy as the market digested nearly a third of the stock changing hands. Z shareholder Infratil also fell.
The S&P/NZX 50 Index dropped 7.94 points, or 0.1 percent, to 5585.420. Within the benchmark index, 22 stocks fell, 21 rose and seven were unchanged. Turnover was far higher than normal at $931 million, of which trades in Z made up $771 million.
Z, the transport fuel distributor and retailer, led the benchmark index lower, falling 12 percent to $5.81, below its placement price of $6 for transactions that saw Infratil sell 20 percent stake, raising $392 million, while the New Zealand Superannuation Fund booked $233 million and halved its stake to 10 percent. Infratil chief executive Marko Bogoievski said while Infratil supported Z and its proposed acquisition of Chevron New Zealand, "the current market provided an opportunity for a clean exit and the flexibility to recycle capital into new growth opportunities."
"Investors that took up the Z Energy offer would still be able to sell stock on the market today in order to settle their purchases and that's created a little bit of additional selling on the market," said Grant Williamson, director at Hamilton Hindin Greene. "The sellers achieved a very acceptable price. Having said that, institutions would have been the main takers of the placement and obviously for them to get large volume sometimes they have to pay a good price."
Infratil fell 1.6 percent to $3.01. The infrastructure investor followed its exit from Z with a bond issue to raise as much as $150 million as it looks to buy Australian renewable energy firm Pacific Hydro.
"Infratil did extremely well out of that Z purchase over a relatively short period of time as well," Williamson said. "They are very smart operators and have done very well, but that's not to say there won’t be more in that Z Energy price over time."
Trade Me Group, the online auction website, declined 2.5 percent to $3.57. Fonterra Shareholders' Fund, units of which give holders access to Fonterra Cooperative Group's dividend stream, declined 2 percent to $5.33.
Coats Group, formerly Guinness Peat Group, was the best performer on the benchmark index, up 3.2 percent to 64 cents. Fletcher Building, the construction and building supplies firm, rose 2.8 percent to $6.99. Spark New Zealand, the telecommunications company, gained 0.5 percent to $2.995.
Outside the benchmark index, Hellaby Holdings fell 0.3 percent to $3. The diversified investment company still expects higher annual earnings in 2016, but warned the first-half will be down from the year earlier.
Pyne Gould Corp rose 4.2 percent to 25 cents. The management firm controlled by managing director George Kerr risks having its shares suspended from trading for the second time in two years after again missing the deadline to lodge its annual report with the NZX. The company blamed the delay on auditors reviewing the accounts.
Pushpay Holdings, which yesterday raised $18.7 million in a private placement to fund its global expansion, jumped 14 percent to $6.85 after the mobile payment app developer said it more than doubled its customer numbers over the past six months, beating its forecast by about 10 percent.
(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