New Zealand shares fell, led by
Contact Energy, after the
biggest utility on the NZX 50 Index said profit may tumble 23%. Banks fell on
concern losses at European lenders may hint at more red ink for financials down
under.
The NZX 50 fell 39.956, or 1.5%, to 2708.019, the biggest decline in about four
weeks. Within the index, 23 stocks fell, 12 rose and 15 were unchanged. Turnover
was about NZ$73 million.
Contact fell 9.8% to NZ$6.63, a record decline for the stock,
after chief executive David Baldwin said underlying profit may fall from last
year’s NZ$237 million as hydro dams in the South Island spill water, the
Tiwai Point aluminium smelter reduces output and gas costs rise. The price Contact
pays for gas is tied to the producer price index which jumped an annualized
13.6% in the six months ended Dec. 31.
“The gas cost issue is significantly worse than people thought,”
said Paul Robertshawe, equities manager at Tower Asset Management. Contact “is
meant to be a defensive company and it came out with a significant profit warning.”
Australia & New Zealand Banking Group fell 4.4% to NZ$17
and
Westpac Banking Corp. declined 4% to NZ$19, tracking Australian
financial stocks lower, after Royal Bank of Scotland forecast of the biggest
loss ever for a U.K. company, stoking fears about the global slowdown and concern
more banks could face losses.
Rural services company
PGG Wrightson fell 7.8% to NZ$1.18,
tumbling for a second day after announcing it would shutter its Australian real
estate and livestock units because of the tough economic conditions.
Wrightson is “relatively highly geared in an environment where that’s
seen as a risk factor,” Robertshawe said. Stocks exposed to the rural
sector have also suffered with the global slump in dairy prices, which spurred
the European Union to offer export subsidies to its farmers this week.
Infratil fell 3.1% to NZ$1.58, its second daily decline, after
the investment company said managing director and founder Lloyd Morrison would
take leave immediately for treatment for a form of leukaemia. Chief operating
officer Marko Bogievski will be acting CEO.
Fisher & Paykel Healthcare climbed 0.9% to NZ$3.23. The
manufacturer of respirators and breathing masks gets about 80% of its revenue
in U.S. dollars and stands to benefit from the weakening New Zealand dollar.
The kiwi currency tumbled to 53.22 U.S. cents, the lowest since early December,
after figures showed inflation eased more than economists had expected last
quarter, giving the central bank more room to cut interest rates on Jan. 29.
Sky Network Television, the pay-TV company whose programming
and equipment costs are in U.S. dollars, rose 1% to NZ$3.89.
Inflation fell 0.5% in the final three months of 2008, while economists had
expected a 0.4% fall. Annual inflation risks falling below the central bank’s
1% to 3% target range this year, economists say.
Pumpkin Patch, the children’s clothing chain with stores
in New Zealand, Australia, the U.K. and the U.S., fell 2.1% to 95 cents. Jeweller
Michael Hill International fell 1.8% to 54 cents.
In Sydney, the S&P/ASX 200 Index dropped 3% to 3481.4 as banks and mining
companies declined.
Rio Tinto dropped 6% to A$38.10 and
BHP Billiton,
which is scheduled to release its latest production data tomorrow, declined
5.2% to A$28.80 after metals prices fell.
Origin Energy, which owns a half-stake of Contact Energy, dropped
4.4% to A$14.52.
Fairfax Media gained 0.3% to A$1.48 after
announcing the sale of Southern Star television for A$75 million. It will use
the funds to repay debt and strengthen its balance sheet.
Australia
and New Zealand Banking Group dropped 4.3% to A$13.81.
The Nikkei 225 Index fell 3.1% to 8003.02 in early afternoon trading as concern
about the widening global financial downturn hurt financial such as Mizuho Financial
Group.
(Businesswire.co.nz)
NZX Top 50
Last updated: 20/01/2009 5:08pm
| AIA |
1.75 |
-0.05 |
 |
| AIR |
0.90 |
0.00 |
 |
| AMP |
6.60 |
+0.06 |
 |
| ANZ |
17.00 |
-0.78 |
|
| APN |
2.68 |
0.00 |
|
| APT |
0.97 |
-0.01 |
|
| CAV |
1.92 |
0.00 |
|
| CEN |
6.66 |
-0.69 |
|
| EBO |
4.40 |
0.00 |
|
| FBU |
5.80 |
-0.05 |
|
| FPA |
1.30 |
-0.02 |
|
| FPH |
3.23 |
+0.03 |
|
| FRE |
2.82 |
-0.04 |
|
| GFF |
1.84 |
-0.01 |
|
| GMT |
0.96 |
-0.01 |
|
| GPG |
0.91 |
-0.01 |
|
| HLG |
2.20 |
0.00 |
|
| IFT |
1.58 |
-0.05 |
|
| IMP |
1.09 |
0.00 |
|
| ING |
0.65 |
0.00 |
|
| KIP |
1.03 |
0.00 |
|
| LNN |
10.20 |
+0.20 |
|
| MFT |
4.70 |
0.00 |
|
| MHI |
0.54 |
-0.01 |
|
| MVN |
1.25 |
-0.01 |
|
| NPX |
3.08 |
0.00 |
|
| NZO |
1.21 |
-0.03 |
|
| NZR |
5.80 |
+0.02 |
|
| NZS |
0.60 |
0.00 |
|
| NZX |
5.30 |
-0.10 |
|
| PFI |
1.10 |
+0.01 |
|
| PGW |
1.18 |
-0.10 |
|
| POT |
6.25 |
+0.05 |
|
| PPL |
0.95 |
-0.02 |
|
| PRC |
0.99 |
-0.02 |
|
| RAK |
1.10 |
-0.05 |
|
| RYM |
1.40 |
-0.01 |
|
| SAN |
5.20 |
-0.05 |
|
| SKC |
3.09 |
0.00 |
|
| SKL |
0.72 |
+0.01 |
|
| SKT |
3.89 |
+0.04 |
|
| STU |
2.90 |
-0.05 |
|
| TEL |
2.42 |
+0.08 |
|
| THL |
0.70 |
+0.02 |
|
| TLS |
4.36 |
0.00 |
|
| TPW |
7.20 |
+0.10 |
|
| TWR |
1.65 |
-0.01 |
|
| VCT |
2.08 |
+0.01 |
|
| WBC |
19.00 |
-0.80 |
|
| WHS |
3.71 |
+0.01 |
|
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