NZX CLOSE: NZX 50 slips off highs, Pyne Gould rights crash 28%

Friday 2nd October 2009

New Zealand’s NZX 50 Index fell off 12 month highs reached earlier in the week, with Pyne Gould Corporation common stock and limited rights both suffering significant, further setbacks.

The NZX Top 50 Index fell 1.1% to 3148.85 as stocks around the world retreated on weaker-than-expected US jobs and manufacturing data and portfolio rearrangement following the end of the September quarter. Some 36 stocks fell and six rose on turnover in the top 50 on $90.112 million turnover.

“We’ve just come through a very good quarter,” said Alan Moore, who helps managed the equivalent of $300 million for Milford Asset Management. “We’ve had a really good run. The markets needed a bit of a breather.”

PGG Wrightson, which is part-owned by troubled capital-raiser Pyne Gould Corporation Ltd was among those leading the fall, down 4.76%, while the limited rights to Pyne Gould’s efforts to raise $273 million from existing shareholders falling 28% to 18 cents.

Pyne Gould head shares touched new record lows, last trading at 43 cents, having been as high as $3.65 in the last 12 months.

“There are some issues for Pyne Gould,” said Moore. “It’s given the South Island wealthy families a bit of a shock.”

F&P Appliances’ decline continued, following a bank facility renegotiation earlier in the week caused by missed ratio targets, with the shares down 2.9% to 66 cents.

Goodman Fielder, which announced a A$500 million new syndicated loan facility, was among the larger movers of the day, down 3.77% to $2.04.

Allied Farmers lost 6.67% to 28 cents, following yesterday’s announcement of a $7 million capital-raising.

Among rare signs of life were Steel & Tube, up 2% at $3.06, Auckland International Airport gained 1.6% to $1.90, and Contact Energy rose 1.03% to $5.86 as it heads towards another rocky Annual Meeting, on October 22, in Wellington.

Businesswire.co.nz

Comments from our readers

No comments yet