Sharechat Logo

MARKET CLOSE: NZ shares fall; Metro Glass, Fletcher decline, SkyCity gains before earnings

Wednesday 8th February 2017

Text too small?

New Zealand shares fell ahead of earnings season which begins tomorrow, with Metro Performance Glass and Fletcher Building down while SkyCity Entertainment Group and Scales Corp rose.

The S&P/NZX 50 Index fell 0.78 of a point, or 0.01 percent, to 7,066.27. Within the index, 24 stocks dropped, 22 rose and four were unchanged. Turnover was $115 million.

"It's a bit of a phony war awaiting results season," said Matt Goodson, managing director at Salt Funds Management. "The December quarter was quite weak for the New Zealand market, and really what was driving that was a sharp rise in bond yields from all-time record lows, and the heavy weighting of bond, property type stocks in our market, then January was really a bit of a rebound."

Metro Performance Glass led the index lower, down 3.2 percent to $1.50. The Auckland-based company, which has more than half the country's glass processing market, saw its shares plunge 18.5 percent last Friday after saying annual net profit was likely to be similar or even lower than the prior year's $20.5 million as local sales lagged behind expectations and costs were higher than expected.

"They staged a bit of a rebound yesterday after that very disappointing guidance update, but they're really weakening off again today as people reassess what the sustainability through the cycle is going to be," Goodson said.

Fletcher dropped 2.8 percent to $10.11, Metlifecare fell 2 percent to $5.45, and Heartland Bank declined 1.3 percent to $1.56.

SkyCity was the best performer, up 4.2 percent to $3.74 ahead of its earnings announcement tomorrow. The stock had been sold off sharply over the past few days with investors nervous ahead of the result, Goodson said.

Scales Corp rose 3.3 percent to $3.47, Australia & New Zealand Banking Group advanced 2.3 percent to $30.59, and Westpac Banking Corp gained 1.9 percent to $33.78.

Infratil gained 0.5 percent to $2.88. In a market update, the infrastructure investor was upbeat about its investment in US renewable energy development company Longroad Energy Holdings, despite President Donald Trump's election promises to boost coal.

Spark New Zealand dipped 0.4 percent while TeamTalk fell 1.3 percent to 74 cents. TeamTalk says a proposed $22.7 million takeover offer from Spark is hostile, highly conditional and recommended shareholders take no action pending further communication from the board.

Outside the benchmark index, Fliway Group dropped 3.4 percent to $1.13. First-half profit dropped 39 percent to $2.2 million as the impact of a major customer's exit and higher freight costs caused by last November's Kaikoura earthquake weighed on the transport and logistics group. The transport group expects its second-half performance will be an improvement on the prior year, with sales growth a priority as it "looks to sell to capacity in its network and increase relationships with existing customer and business partners." 

Hellaby Holdings was unchanged at $3.57. It will delist from the NZX by March 8, after ASX-listed auto firm Bapcor succeeded in its $352 million takeover of the diversified investment group earlier this month.

  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:

NZ farm sales fall 11% in March quarter as mycoplasma bovis keeps farmers nervous
NXT-listed QEX Logistics says annual gross margins wider than anticipated
High Court orders Forestlands IRD debt can be paid from $18M funds in trust; liquidation sought by FMA
April 23rd Morning Report
NZ dollar falls near 72 US cts as growing inflationary pressures drive up US Treasury yields
World Week Ahead: Gearing up for tech earnings
MARKET CLOSE: NZ shares fall as MSCI changes debated, Mercury falls, Fletcher gains
NZ dollar heads for 1.6% weekly fall as greenback finds favour on rate hike view
FMA keeping close tabs on Australian Royal Commission as AMP chief Meller departs
NZ's R&D tax incentive plan viewed as positive by business

IRG See IRG research reports