NZX CLOSE: Shares slip for second day; Telstra falls on split

Tuesday 15th September 2009

New Zealand shares fell for a second day, led by the NZX-listed shares of Telstra Corp. after Australia’s government gave the phone company an ultimatum to split up its operations.

The NZX 50 Index fell 29.04, or 0.9%, to 3099.62. Within the index, 25 stocks fell, 16 rose and nine were unchanged. Turnover was $82.8 million.

Telstra (NZX: TLS ) fell 4.3% to $3.83. Australia’s largest fixed-line phone operator will have to separate its retail and wholesale businesses or have the split forced on it to comply with the federal government’s strategy for broadband services. The split would set it down the same path as Telecom Corp., which fell 1.5% to $2.68 today.

Methven Ltd (NZX: MVN ), the tap and bathroom ware manufacturer, fell 3% to $1.55, leading declines among companies that typically suffer with a high kiwi dollar.

Fisher & Paykel Healthcare (NZX: FPH ), which gets almost 80% of its revenue in U.S. dollars, declined 2.7% to $3.23. The New Zealand dollar recently traded at 70.24 U.S. cents, holding near the highest level in more than 12 months.

New Zealand Oil & Gas (NZX: NZO ) edged up 0.6% to $1.67, adding to yesterday’s 3.1% gain as brokerages speculated on the value to its shares of a successful result from its drilling to extent the Tui field and its Hoki and Albacore prospects.

Vector Ltd (NZX: VCT ), the nation’s biggest gas and electricity lines company, fell 1% to $1.97. Morningstar cut its 2010 profit forecast by $10 million to $158 million because of lower-than-expected earnings from gas and increased costs, according to the ShareChat website. The stock is rated a ‘hold’ according to the consensus of seven recommendations compiled by Reuters.

Air New Zealand Ltd (NZX: AIR ) rose 0.8% to $1.22 after Delta Air Lines, the world’s biggest carrier, raised its forecast third-quarter operating margin to 3% to 4% from an earlier estimate of 1% to 3%, citing lower fuel and financial costs.

PGG Wrightson (NZX: PGW ) the nation’s biggest rural services company, rose 1.4% to 73 cents after government figures showed manufacturing sales volumes rose in both the meat and dairy industries. The value of sales fell, reflecting lower prices.

NZ Farming Systems Uruguay (NZX: NZS ), which is developing dairy farms in South America, climbed 2.4% to 43 cents.

F&P Appliances (NZX: FPA ) rose 2.6% to 79 cents, the biggest gain on the NZX 50 today.

Businesswire.co.nz

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