MARKET CLOSE: NZX 50 falls a second day; Wrightson drops

Friday 10th July 2009

New Zealand’s NZX 50 index fell for a second day, led by PGG Wrightson, after its rival in the rural services market, Fonterra Cooperative Group’s RD1, offered interest free terms to dairy farmers for essential items.

The NZX 50 fell 3.39, or 0.1% to 2738.28, the lowest since May 28. Within the index, 17 stocks fell, 20 rose and 13 were unchanged. Turnover was a paltry $49.5 million, making it one of the lowest days this year.

PGG Wrightson (NZX: PGW ) dropped 3.7% to $1.05 and is down 14% this year. Fonterra today said it will lend its 50%-owned RD1 rural retailer $15 million until April 30 next year, to enable it to offer interest free terms. Wrightson last month said operating earnings in the year through June 30 fell to NZ$30 million-$32 million, from a year-earlier $39.2 million on the downturn in dairy and tepid spending by sheep and beef farmers.

Jeweller Michael Hill International (NZX: MHI ) shed 1.6% to 63 cents and Hallenstein Glasson Holdings (NZX: HLG ) fell 1.5% to $2.56.

Infratil Ltd (NZX: IFT ) gained 0.6% to $1.67. The investment group’s IFTWB warrants expired today, with underwriting arranged by First NZ Capital for at least 68 million and other major shareholders committing to exercise about 30 million, helping bolster its balance sheet.

Pumpkin Patch (NZX: PPL ), the children’s clothing chain, rose 0.7% to $1.51. The retailer’s decision to cut back unprofitable stores in the US still offers a platform for medium-term growth, says Warren Doak at Macquarie Equities, according to the ShareChat website. Macquarie rates the stock ‘outperform.’

Tourism Holdings (NZX: THL ), the campervan rental company, rose 4.4% to 47 cents. Government figures today showed a 5% pickup in international visitor nights in the South Island in May from a year earlier, which may be a sign that tourists numbers haven’t fallen off a cliff.

Freightways (NZX: FRE ), the courier and logistics company, rose 3.6% to $2.85, leading the index higher.

Skellerup Holdings (NZX: SKL ) gained 3.6% to 57 cents and ING Property Trust (NZX: ING ) rose 3% to 66 cents.

Businesswire.co.nz

Comments from our readers

No comments yet