MARKET CLOSE: NZ shares fall; Kathmandu drops, NZS, NWF gain

Tuesday 27th April 2010

New Zealand shares fell, led by retailers Kathmandu Holdings and Michel Hill International, as the kiwi dollar held near a three-month high, eroding the value of overseas revenue. NZ Farming Systems Uruguay led gainers after Fonterra Cooperative Group raised its milk payment forecast.

The NZX 50 Index declined 14.34, or 0.4%, to 3291.912, the first drop in three sessions. Within the index, 21 stocks fell, 15 rose and 14 were unchanged. Turnover was $63 million.

Kathmandu, the outdoor equipment chain, fell 4% to $2.39 and jeweller Michael Hill; fell 2.7% to 72 cents. Among other companies that depend on overseas revenue, fish exporter Sanford fell 1.4% to $4.35 and Rakon, which makes crystal oscillators used in navigation systems and mobile phones, fell 1.9% to $1.03.

The New Zealand dollar climbed above 72 US cents as Fonterra lifted its forecast payment and traders looked ahead to the central bank’s review of interest rates on Thursday, which will signal the timing of hikes to the official cash rate.

Fonterra, the world’s biggest dairy exporter, raised its forecast milk price for 2009/10 by 7% to $6.10 a kilogram of milk solids in the year ending May 31, citing rising global dairy prices as demand begins to outstrip supply. “The global supply/demand balance for dairy products has shifted to a slight supply deficit,” said chairman Henry van der Heyden.

Farming Systems rose 5.1% to 41 cents, the biggest gainer on the NZX 50 today.

Fisher & Paykel Appliance rose 5.1% to 62 cents and medical supplies distributor Ebos Group rose 1.1% to $6.52.

NZ Windfarms, the listed Manawatu windfarm operator, jumped 8.7% to 25 cents after saying revenue jumped to $1.5 million in the January-March quarter from just $194,000 a year earlier.

Cue Energy Resources rose 5.7% to 37 cents after announcing that Australia’s Woodside Energy has agreed to farm into Cue’s 100% interest in WA-389-P permit in the offshore Carnarvon Basin of Western Australia. The permit area has the potential to contain “multi trillion cubic feet volumes of natural gas,” Cue said in a statement today.

Pyne Gould Corp. fell 2.1% to 47 cents and NZX declined 1.6% to $1.82.

Businesswire.co.nz

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