Sharechat Logo

MARKET CLOSE: NZ shares rise, Fletcher, Contact gain; Vista, Comvita fall

Monday 13th February 2017

Text too small?

 New Zealand shares rose as Contact Energy posted stronger first-half earnings, and Fletcher Building, A2 Milk Co gained, while Vista Group International and Comvita fell.

The S&P/NZX 50 Index rose 31.07 points, or 0.4 percent, to 7,135.5. Within the index, 26 stocks rose, 17 fell and seven were unchanged. Turnover was $94.5 million.

Contact Energy rose 1.7 percent to $4.87. It posted a 12 percent gain in first-half underlying profit to $82 million while holding its dividend unchanged and trimming capital expenditure in the face of weaker sales. Sales fell to $1.04 billion from $1.12 billion, and net income was $96 million compared with a loss of $116 million a year-earlier, which reflected impairments.

"Obviously they're looking to continue to find operational improvements, even though sales were broadly in line with what was expected it highlights a tough retail market in that sector," said Peter McIntyre, an investment adviser at Craigs Investment Partners. "The market quite likes it, it's up on a low-volume day, though. It was a reasonable result, within expectations."

Fletcher led the index, up 2.4 percent to $10.30. McIntyre said he was expecting Fletcher to report well, with recent bounces in the share price partly attributable to institutions trimming their holdings. 

A2 Milk gained 2.4 percent to $2.60 while Genesis Energy rose 1.4 percent to $2.17.

Property for Industry gained 0.3 percent to $1.62. The industrial property investor reported a record full-year profit of $123.4 million on higher revenues and lower costs and remained upbeat about the current financial year. Distributable profit, which strips out unrealised movements in the value of the property portfolio, was $34.1 million, or 7.58 cents per share, 8.1 percent higher than the prior year.

"'You'd expect for that quality of result that it would've got a share price uptick, there's been a bit of profit taking in that sector in the past six months or so," McIntyre said. "Their financial position remains strong and the Auckland industrial market remains really positive for them. In a low interest rate environment, where demand for industrial property is strong, they've performed very well."

Vista was the worst performer, dropping 2.5 percent to $5.50, while Comvita fell 2.3 percent to $6.72 and New Zealand Refining Co declined 1.7 percent to $2.83. 

Outside the benchmark index, ASX-listed discount electronics good retailer JB Hi-Fi gained 3 percent to A$29.33. The company's management is keeping an eye on the New Zealand business after first-half earnings halved on this side of the Tasman to $1 million, as rising costs eroded the firm's margins.

  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:

Turners Automotive Group Limited (NZX: TRA) Upgrades FY21 Earnings Guidance
Blackwell Global Holdings Limited (NZX: BGI) Restructure of Business Operations
Vista Group International Limited (NZX: VGL) Vista Group appoints James Miller as Independent Director
Rakon Limited (NZX: RAK) Update of FY2021 Earnings Guidance
The a2 Milk Company Limited (NZX: ATM) Organisational Announcement
Reserve Bank of New Zealand Committed to Action as It Responds to Data Breach
MHM Automation Limited (NZX: MHM) Settlement of New Plymouth Building Sale
Napier Port Holdings Limited (NZX: NPH) First Quarter 2021 Trade Volumes
New Zealand Oil & Gas Limited (NZX: NZO) Mahato PSC Update - Oil Production
Michael Hill International Limited (NZX: MHJ) Update - Dividend/Distribution

IRG See IRG research reports