Sharechat Logo

Auckland holiday robs NZ sharemarket of volume, index edges up

By NZPA

Monday 29th January 2007

Text too small?
The New Zealand sharemarket rebounded after its negative open today, although trading was subdued with Auckland on holiday.

The NZSX-50 index closed up 15.48 points, or 0.4%, at 4136.34, on a pitiful $44 million worth of shares traded.

Telecom rose 3c to a session high of $5.14 ahead of its first-half profit on Friday, and as buyers line up to buy the company's directories business. Indicative bids are due on Friday, according to media reports.

"I think the result is maybe not the main driver to Telecom at the moment, the directory business is really what is driving this share price at the current time," said Grant Williams of Hamilton Hindin Greene.

Fletcher Building, another market heavyweight, was down 3c at $11.12, and Contact Energy was 2c lower at $8.39.

Michael Hill International, which surprised the market on Friday saying better-than-expected Christmas trading was likely to lift its first-half profit, rose 10c to a five-month high of $7.48.

"It doesn't trade a lot, it's quite an illiquid stock, quite tightly held, but I think it is viewed as one of the better-quality retailers on the market," Williamson said.

"I think the market is giving it a bit of a rerating, because it just seems to continue on its growth path."

That was in contrast to last week's profit warnings from clothing retailer Hallenstein Glasson last week, and diversified investment company Hellaby Holdings, which fell 5c to $5.05 and 6c to $4.11 respectively today.

Among other retailers, takeover target The Warehouse was up 2c at a four-year high of $7.30, Pumpkin Patch fell 4c to $4.86, and Restaurant Brands was flat at $1.12.

Exporter and manufacturer Fisher & Paykel Healthcare was down 3c at $4.22, on continued strength in the New Zealand dollar.

"It is going to be quite difficult for these companies to show any sort of earnings growth when the dollar is so strong," Williamson said.

"Unfortunately for stocks like F&P Healthcare, they are priced as a growth stock."

Infratil was up 2c at $5.65 after news it is taking a 51% stake in a Perth energy retailer for $A7 million ($NZ7.9 million).

Ryman Healthcare was up 7c at $2.25, after a five-for-one share split effective today.

Australia's benchmark index was down 1.6 points at 5767.9, while Japan's Nikkei share average edged up after a brokerage upgrade of mobile telephone operator Softbank, and steel maker JFE Holdings gained on expectations of a business tie-up with Hyundai Steel.

On Friday, the US stock market ended slightly lower on concerns that strong economic reports will reduce the chances of an interest rate cut.

  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:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report