Sharechat Logo

MARKET CLOSE: NZ shares up, Kathmandu and A2 lead gains while Pushpay, Rakon rally on earnings

Thursday 16th November 2017

Text too small?

New Zealand shares rose, led higher by Kathmandu Holdings and A2 Milk Co, while CBL Corp dropped.

The S&P/NZX50 Index gained 34.76 points, or 0.4 percent, to 8,034.7. Within the index, 26 stocks rose, 19 fell and five were unchanged. Turnover was $190 million. 

"There's not a lot going on today, some stocks are regaining ground they lost yesterday," said Grant Williamson, broker at Hamilton Hindin Greene. "There's a bit of buying activity in A2 and Synlait which obviously helps the index somewhat."

Kathmandu Holdings led the index, up 2.5 percent to $2.44. Z Energy gained 2.4 percent to $7.70 and Metro Performance Glass rose 2.3 percent to 88 cents.

A2 Milk Co gained 2.1 percent to $7.79 while Synlait Milk advanced 1.9 percent to $7.08.

CBL Corp was the worst performer, down 1.3 percent to $3.04. Vector dropped 1.2 percent to $3.31 and Port of Tauranga fell 0.9 percent to $4.54.

Outside the benchmark index, Pushpay Holdings rose 3.1 percent to $3.37. The mobile payments app company's results released today show the Auckland-domiciled, US-headquartered company's loss widened to US$12.5 million in the six months ended Sept. 30, from US$11.3 million a year earlier, while revenue more than doubled to US$29.7 million from US$12.1 million.

Pushpay says it's planning on a US listing and likely a capital raising within the next 15 months, but that won't mean de-listing from the NZX or ASX.

Steel & Tube Holdings dropped 1 percent to $2.04. Its first-half earnings may fall as much as 38 percent, reflecting a write-down of inventory, restructuring costs and margin pressures. The guidance came as the company holds its annual meeting in Wellington.

First-half earnings before interest and tax would be $9-to-$10 million below the year-earlier period, it said in a statement. Underlying ebit was about $16 million in the first half of the 2017 year.

"The market is not too surprised," Williamson said. "Steel prices are having to be moved up by distributors because underlying steel prices have moved higher and they're trying to re-capture margins, but it takes time to flow through."

Rakon gained 7 percent to 23 cents. The Auckland-based company turned to a first-half profit of $908,000 from a $5.7 million loss a year earlier, citing growth across the technology company's key markets, improved margins and lower costs.

"That was signalled a wee while ago, it certainly seems to be improving but off a very low base," Williamson said. "Investors will be a little bit relieved there."

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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: NZ shares at fresh high, Vector, A2 gain while Pushpay, Comvita drop
NZ dollar benefits from USD weakness after Trump complains about rate rises
Gold Report 21st August 2018
FlexiGroup's NZ cards business outpaces credit growth; bad debt ticks up
Tilt strategy still emerging - Mercury
Healthscope's NZ pathology shares efficiencies with DHBs, stalling earnings growth
Government to make new 'red zone' payment for uninsured homes
Port Taranaki lifts 2018 dividend on increased profit
NZ net migration continues slow in July as long-term visitors pack up and leave
Super Retail's annual earnings boosted by Macpac acquisition, online sales

IRG See IRG research reports