Shares mixed in light trading; PGW gains, MVN falls

Monday 23rd November 2009

New Zealand shares were mixed in light trading as investors channeled cash into new share sales. PGG Wrightson (NZX: PGW ) led advancing shares and Methven (NZX: MVN ) fell after the tapmaker was dropped from the benchmark index.

The NZX 50 fell 0.65, or 0.02%, to 3112.97. Within the index, 21 stocks rose, 19 fell and 11 were unchanged. Turnover was a lower-than-average $49.7 million.

Wrightson gained 4.7% to 67 cents. The nation’s biggest rural services company on Friday announced a full underwritten rights issue to raise $180.1 million, part of a total $249.4 million to be raised selling shares and notes to repay debt.

Pyne Gould (NZX: PGG ) which will take up its rights from its 20.7% stake in Wrightson, fell 2.1% to 46 cents.

Among companies tapping investors for funds are milk processor Synlait, biotechnology company BioVittoria, and property investor DNZ Property Group.

Postie Plus (NZX: PPG ), the clothing and baby-ware chain 18% owned by Kathmandu founder Jan Cameron, rose 2.6% to 40 cents after posting a 15% increase in sales in the first quarter, putting it on track for a narrower first-half loss than last year’s $2.6 million loss.

Ryman Healthcare (NZX: RYM ) fell 0.5% to $1.95 even after the rest-home operator posted a record first-half profit after expanding its villages and reaping more in care and management fees. Its shares have surged 40% this year.

"There were a couple of results that were reasonably okay as expected," said Alan Moore, who helps oversee $350 million at Milford Asset Management in Wellington. "People are starting to ease down a bit after the battering they've had for the last 12 months. There's a holiday in the U.S. this week and people are waiting to see what happens over there after it didn't finish well last week."

The Dow Jones Industrial Average edged down 0.1% on Friday in New York.

Kathmandu (NZX: KMD ), which entered the NZX 50 today in place of Methven after selling shares at $2.13 apiece in its IPO, fell 0.9% to $2.15 today. Methven weakened 2% to $1.46.

Retailers were mixed after the ANZ-Roy Morgan Consumer Confidence Survey showed consumer sentiment fell for the first time in four months, hinting at a subdued Christmas season, the peak period of the year for retail sales.

Consumer confidence slipped 4.4 points this month to 121.5 according to the ANZ-Roy Morgan Consumer Confidence survey, where a reading of 100 separates optimists from pessimists. Respondents to the survey found November was a worse time to buy big ticket items than in October.

Michael Hill International (NZX: MHI ) declined 1.6% to 60 cents, the biggest decliner on the NZSX Consumer Index. Briscoe Group (NZX: BRG ) fell 0.8% to $1.19 and Warehouse Group fell 0.7% to $4.05. Clothing chain Hallenstein Glasson (NZX: HLG ) gained 2.2% to $3.20 and Pumpkin Patch (NZX: PPL ) climbed 0.6% to $1.81.

Pike River Coal (NZX: PRC ), which is developing a coal mine with guaranteed sales in the South Island, fell 1% to 99 cents. Managing director Gordon Ward told shareholders at their annual meeting today that the company is confident it will gain an extension on the terms of its US$27.5 million of Liberty Harbor convertible bonds.

Delays in mine development meant Pike couldn’t meet the production deadlines under the terms of the debt.

Telecom (NZX: TEL ) fell 3% to $2.48 after the phone company went ex its 6 cents a share interim dividend.

Sky City (NZX: SKC ) fell 1.8% to $3.31 and AMP NZ Office Trust (NZX: APT ) dropped 1.3% to 77 cents.

Businesswire.co.nz

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