Sharechat Logo

MARKET CLOSE: Telecom powers ahead


Wednesday 25th May 2011

Text too small?

Telecom shares powered further ahead to a new 16-month high today even though equity markets in Asia were weak, while Fisher & Paykel Healthcare shares fell.

The driver for Telecom continued to be yesterday's announcement it had snared nearly 70 percent of the Government's ultrafast broadband initiative, while Fisher & Paykel Healthcare paid a price for giving disappointing earnings guidance.

After lifting 15c yesterday, Telecom's share price closed up 5c at $2.48 and traded as high as $2.54.

"It was obviously a good result for them from the Government and there were multiple broker upgrades overnight," said James Lee, head of institutional equities at First NZ Capital.

The benchmark NZX-50 index eased 5.186 points, or 0.146 percent, to 3554.365.

Fisher & Paykel Healthcare fell 11c to $3.00 after reporting net profit for the year to March 31 fell 11 percent from a year earlier to $63.9 million, excluding one-off non-cash deferred tax charges.

Unfavourable exchange rate movements were a key factor in the fall, along with expenses related to the establishment and expansion of manufacturing in Mexico.

"The result was bang in line with expectations, but the forward looking guidance had a range that was much wider than the market was expecting," Lee said.

Ebos Group eased 8c to $7.25.

Kathmandu Holdings eased 7c to $2.36 and Port of Tauranga eased 14c to $8.82. TrustPower eased 16c to $7.43 but was trading with a 20c dividend no longer payable.

Fletcher Building eased 8c to $8.93 and Auckland Airport eased 2c to $2.28. SkyCity eased 3c to $3.72.

"Across Asia, regional markets are all lower as traders continued to worry about concerns of US growth and the Eurozone sovereign debt problems," IG Markets said.

A report in the Wall Street Journal suggesting the five largest US banks face a large liability in civil lawsuits if a settlement isn't reached to address improper foreclosure practices saw risk aversion sweep across markets. In the United States on Tuesday, stocks dipped in light volume as lingering concerns about a slowdown in growth more than offset gains in energy shares.

The Dow Jones industrial average lost 0.2 percent to 12,356.21, the Standard & Poor's 500 Index dropped 0.1 percent to 1316.28, and the Nasdaq Composite Index fell 0.5 percent to 2746.16.

  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:

Telecom Corporation of New Zealand (TEL)
Telecom in drive to latch on to growing data usage with 4G mobile launch next month
Telecom lines up to buy 700MHz spectrum to extend reach of 4G network
Telecom backs setting copper prices until 2020, warns against getting too far away from input cost
Telecom puts $60M price tag on new Auckland data centre, Hawkins, AECOM win build
Telecom ends jobs purge, looks for ‘more sophisticated’ ways to save money
Telecom FY earnings fall to bottom of guidance range, sees unchanged dividend in 2014
Telecom takes spat with Vodafone to regulator after dropping court action
Telecom unbundling key to regulator's copper conundrum
Telecom lures customers to faster services in EPL deal