Friday 19th November 2010 |
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New Zealand stocks fell for a fourth session, as investors regrouped after a volatile week in which European sovereign debt concerns stalked the market. Pike River Coal paced decliners on the day, while Telstra rose.
The NZX 50 Index fell 12.3 points, or 0.4%, to 3,268.15. Within the index, 25 stocks fell, 14 rose and 11 were unchanged. Turnover was $95.9 million.
"Everything is just coming off the boil, and we're seeing people being wary of sovereign debt issues in Europe," said Shane Solly, portfolio manager for Mint Asset management.
"There is a little lethargy in the market today with people wanting to be cautious and wait for better news."Pike, the coal miner, fell 4.4% to 88 cents.
The company said last week that it will abandon its practice of giving best case scenario forecasts after production delays forced it to raise more capital to keep going while it ramps up two years late to full production.
The coal miner was forced to cut its production forecast by almost half to 340,000-to-360,000 tonnes due to delays at its hydro mining operations.
New Zealand Oil & Gas fell 2.4% to $1.20; APN News & Media fell 4% to $2.40; Pyne Gould, the financial services company looking to transform itself into a bank, fell 2.4% to 40 cents; and AMP fell 2.1% to $6.41.
Telstra rose 1.9% to $3.30 on the NZX, pacing gainers on the local bourse. The company today told shareholders that it intends to maintain its dividend at a fully-franked 28 Australian cents per share for the current year and the following year despite forecasting “a high single-digit percentage decline” in earnings before interest, tax, depreciation and amortisation for the year ending June 30, 2011.
Vital Healthcare Property Trust fell 1.6% to $1.22 ahead of its annual meeting next week, where it is looking for the thumbs-up from shareholders to buy 12 properties in Australia and revise its fee structure.
Solly said the Australian deal had "an attractive investment case" and markets would be watching developments closely. Freightways rose 1.7% to $2.95, Rakon rose 1.7% to $1.21, and NZX rose 1.3% to $1.53.
Infratil rose 0.5% to $1.88 after the Wellington gateway reported net earnings, expressed as ebitda, of $9.6 million for the six months to September 30.
That was $600,000 higher compared to the same period in the previous year.Infratil director Tim Brown said at a briefing this week the airport’s fortunes could be transformed as an Asian gateway, but only when the long distance Boeing 787’s capable of handling Wellington’s short runway “finally turn up.”
Air New Zealand rose 0.8% to $1.33 after the New Zealand Shareholders' Association presented the airline's chief executive Rob Fyfe with its Beacon Award, which recognises excellence in corporate leadership.
Businesswire.co.nz
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