NZX CLOSE: Shares fall with Wrightson; Nuplex climbs

Thursday 27th August 2009

New Zealand shares fell after PGG Wrightson posted a full-year loss and said its reviewing options to raise capital and sell assets and NZ Farming Systems Uruguay tumbled. Nuplex Industries led gaining shares after announcing a special dividend.

The NZX 50 Index fell 14.48, or 0.5%, to 3076.41, snapping three days of gains. Within the index, 25 stocks fell, 16 rose and nine were unchanged. Turnover was $98.7 million.

PGG Wrightson (NZX: PGW ), the nation’s biggest rural services company, fell about 6% to 79 cents, the lowest since Feb. 25. The company reported an annual loss of NZ$66.4 million and said it had to gain a waiver from its banks, giving it time to increase and lengthen its facilities. It hired First NZ Capital and UBS to help review its capital structure.

The loss partly reflected recognition of a drop in the value of its holding in NZ Farming Systems Uruguay (NZX: NZS ) and lack of a performance fee from the South American dairy farm developer. Farming Systems, which yesterday reported its annual loss widened to US$15.6 million, tumbled 13% to 40 cents today.

Nuplex (NZX: NPX ) jumped 8.8% to $2.35 after the specialty chemicals maker posted full-year earnings that beat its guidance and announced a special dividend.

The special dividend “looks designed to give added confidence to the fact that business is improving,” said Alan Moore, who helps manage $300 million at Milford Asset Management. “Things are not storming along but recovering slowly. You’ve got to believe the global economy is improving and they are the sort of company that will benefit from it.”

Telecom Corp (NZX: TEL ), the biggest company on the NZX 50, fell 1.5% to $2.71. The Commerce Commission is investigating a potential breach of Telecom operational separation, but has yet to decide whether to pursue a full inquiry for anti-competitive behaviour.

The regulator has acted following a report from the Independent Oversight Group, a government-appointed watchdog body. It is also considering whether the Telecom Wholesale unit’s loyalty offer breaches competition laws.

Abano Healthcare Group (NZX: ABA ) soared 15% to $6.90, the highest level in a decade, after announcing the sale of its New Zealand audiology interests for $157.8 million, strengthening its balance sheet and allowing a capital return to shareholders of about $53 million.

Metlifecare Ltd (NZX: MET ) rose 3.8% to $2.20 after posting a full-year loss that doubled to $115.7 million, reflecting a write down in the fair value of its property investments. Operating revenue edged up 0.3% to $58.6 million as the company maintained its occupancy levels.

Air New Zealand (NZX: AIR ) declined 1.6% to $1.23. The airline posted a 90% slump in annual profit as operating costs rose and increased rivalry in weak markets drove down fares. Revenue fell 2% to $4.7 billion and the airline maintained its passenger load factor by cutting capacity by 7.2%.

Businesswire.co.nz

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