Market close: Share slip, led by Nuplex on charges for plant closures
BUSINESSDESK: New Zealand shares fell, led by Nuplex Industries, after the specialty chemicals maker said charges to consolidate its operations would dent 2013 profit. Hallenstein Glasson Holdings led a rally in retailers.
The NZX 50 Index fell 0.42 points, or 0.01%, to 3809.15. Within the index, 27 shares rose, 13 fell and 10 were unchanged. Turnover was $99.2 million.
Nuplex Industries fell 6.6% to $2.97 after the company said it would close four plants in Australia and New Zealand in the next two years as the trading outlook dims, eliminating jobs in a restructuring effort that will slice $17 million from forecast 2013 profit.
"It is a pretty disappointing announcement," says Craig Brown, senior investment analyst at One Path New Zealand. "The outcome is worse than people were expecting. It is a difficult world out there and people should perhaps expect a few more of these types of announcements."
Auckland International Airport fell 1.1% to $2.62. While visitors from Asia rose 14.4% last month, total international traffic fell.
Separately, the company reiterated its forecast net profit, excluding any fair value changes and other one-off items to be $143 million to $150 million in the year ended June 30, 2013. That is up from a $142.3 million a year earlier.
"You are cycling off the Rugby World Cup and that will make comparisons harder," Mr Brown says.
Air New Zealand, the airline slated for government sell down, fell 2.2% to $1.11.
Hallenstein Glasson Holdings, the clothing retailer, rose 4.4% to $4.70. The company is scheduled to release its full-year results on September 26 and said last month that net profit would be $20.4 million to $20.8 million, up from last year's $18.3 million.
Michael Hill, New Zealand's only listed jewellery maker, climbed 2.6% to $1.20. The Warehouse, the biggest retailer on the NZX 50, rose 1.7% to $3.02.
"There are a couple of factors helping the retailers one of them could be it was cold over the winter and the high kiwi means they can buy in US dollars. That helps them from a profitability point of view," says Craig Brown, senior investment analyst at One Path New Zealand.
Pumpkin Patch, the children's clothing retailer, rose 1.7% to $1.17 ahead of its full-year results this week.
Telecom, the largest company on the exchange, gained 0.4% to $2.345. Fletcher Building, New Zealand's largest listed construction company, rose 0.7% to $7.07.