NZX CLOSE: NZ shares fall in light trading; Warehouse dips on outlook

Friday 13th November 2009

New Zealand shares fell in one of the lightest trading days this year as a drop in the price of crude weighed on oil companies and retailer Warehouse Group said it is trading behind budget in the run-up to Christmas.

The NZX 50 Index declined 13.94, or 0.4%, to 3158.14. Within the index, 22 stocks fell, 18 rose and 10 were unchanged. Turnover was $42.8 million.

Warehouse, the biggest retailer on the benchmark index, declined 4.4% to $4.11 after chief executive Ian Morrice said revenue in September and October were lower than expected, signaling a slow start to sales of seasonal goods. Retail demand “remains unpredictable” despite a pick-up in consumer sentiment, he said.

Among other retailers, clothing chain Hallenstein Glasson Holdings dipped 0.6% to $3.10 and Briscoe Group, the home-ware and sports goods retailer, declined 2.5% to $1.17.

“Most people had anticipated a modest outlook” for Warehouse, said Shane Solly, who manages $50 million to $100 million for high net worth individuals at Mint Asset Management. “We like the long-term outlook” for equities though there are “reasons to be a bit cautious” short term.

Kathmandu Holdings, the outdoor equipment and clothing chain, ended its first day of trading on the NZX at $2.23, a 4.7% gain from its initial public offering price of $2.13.

Financial director Mark Todd said outdoor supplies “are quite a niche and specific market” and the company has very little competition at present. “Business has been reasonably good in retail and this has been reflected in recent weeks – we’re comfortable with our own trading,” Todd told BusinessWire.

Pan Pacific Petroleum sank 3.6% to 54 cents, snapping four days of gains, after the price of oil headed for its second weekly decline.New York crude oil for December delivery traded at about US$77.04 a barrel in Asia today, having fallen to US$76.94 yesterday, the lowest settlement price since Oct. 14.

New Zealand Oil & Gas declined 1.7% to $1.69. Coal miner Pike River Coal fell 1.9% to $1.02.

Comvita Ltd., the health-care products manufacturer, climbed 4.8% to $1.30, adding to yesterday’s 7.8% jump after chief executive Brett Hewlett said his industry "has escaped any significant impact of the recessionary downturn" and the company reported a 27% jump in first –half sales.

NZ Farming Systems Uruguay gained 2.2% to 46 cents and PGG Wrightson rose 1.6% to 63 cents after Synlait Ltd., the Canterbury-based dairy group, announced plans to take its milk processing division public, taking advantage of resurgent global prices to raise funds to expand.

Freightways Ltd, the courier company, rose about 2% to $3.14 and trucking firm Mainfreight Ltd gained 1.8% to $5.65. NZX Ltd, the stock exchange operator, rose 1.2% to $8.20.

Westpac Banking Corp. fell 1.2% to $33.30 and Australia & New Zealand Banking Group declined 1.4% to $28.50, tracking shares of Australian lenders on the ASX lower.

Businesswire.co.nz

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