Sharechat Logo

MARKET CLOSE: Ebos and Sky TV have a good day

Thursday 5th August 2010

Text too small?

New Zealand shares rose, lifting the NZX 50 Index for the sixth time in seven sessions, after Ebos announced the sale of its science units, allowing it to repay debt, and as Sky TV reached a three-month high.

The NZX 50 gained 6.53, or 0.2%, to 3044.66. Within the index, 19 stocks rose, 19 fell and 12 were unchanged. Turnover was $55.4 million.

Ebos (NZX: EBO ), the medical supplies distributor, rose 4.2% to a record close of $6.70, bringing its gain in the past 12 months to 20%. The company announced today it will sell its trans-Tasman science businesses to American firm VWR International, allowing it to erase all of its debt. 

“The transaction will be value-positive for Ebos shareholders both in terms of a gain on sale from the transaction and the resultant cash flow,” it said.

Sky TV (NZX: SKT ) rose 3.3% to $5.05. The nation’s biggest pay-TV company is expected to post a 10.5% gain in reported earnings, according to Forsyth Barr, which rates the shares a buy. Its outlook is positive given the defense nature of its earnings.

Rakon (NZX: RAK ) gained 3.8% to $1.10 as the kiwi dollar tumbled following a weaker-than-expected employment report for the second quarter. The jobless rate jumped to 6.8%. A weaker dollar helps boost the value of overseas revenue when it is brought home. Nuplex (NZX: NPX ) rose 1.3% to $3.04.

The kiwi dollar traded recently at 72.95 US cents from about 73.50 cents immediately before the jobs data was released.

Vector (NZX: VCT ) climbed 1.9% to $2.10.

Kathmandu (NZX: KMD ) fell 3.3% to $1.76, adding to yesterday’s 12% slump after it said gross margins fell short of last year’s forecast at 63%, which is below both the 64.4% result in the previous year and 64% prospectus figure.

Among other retailers, Michael Hill (NZX: MHI ) declined 2.9% to 66 cents and Pumpkin Patch (NZX: PPL ) dropped 3.4% to $1.71.

NZ Farming Systems Uruguay (NZX: NZS ), which is awaiting a firm takeover offer from Olam International, fell 3.5% to 55 cents. Fonterra said yesterday it may have to reduce its forecast payment to farmers because of weakening in global dairy prices and the strength of the New Zealand dollar. Olam has said it will offer 55 cents a share for the rest of Farming Systems.

Telecom (NZX: TEL ) rose 0.5% to $2.02 after Standard & Poor’s put the company on CreditWatch Negative, giving it a one-in-two chance of a downgrade over the next three months. The company has proposed separating its lines and retail businesses to participate in the government’s high-speed broadband rollout.

Guinness Peat Group (NZX: GPG ) fell about 3% to 65 cents.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: Mainfreight shares rise in weak market
MARKET CLOSE: Telecom powers ahead
MARKET CLOSE: NZX stars on the market
MARKET CLOSE: NZX lifts nearly 10pts, despite post-Budget slip
MARKET CLOSE: NZX lifts again in quiet day
MARKET CLOSE: NZX closes up but off best levels
MARKET CLOSE: Sharemarket bounces unconvincingly
MARKET CLOSE: NZX finishes down again
MARKET CLOSE: Tower shares slip as quake impact hits home
Market Close: Shares ease ahead of OCR call