Market close: NZ shares fall, led by Goodman Fielder, Telecom
BUSINESSDESK: New Zealand shares fell, led by Goodman Fielder after the company scotched media reports of a takeover offer and telecommunications company Telecom declined from its highest level since August 2008.
The NZX 50 Index fell 14.98 points, or 0.4%, to 3616.19. Within the index, 20 stocks fell, 19 rose and 11 were unchanged. Turnover was about $138.8 million, above the daily average this year.
The decline was led by Goodman Fielder, down 4.1% to 70 cents.
The food ingredients manufacturer whose brands include Edmonds baking products and Vogel’s bread denied reports it has received an offer from the world’s largest palm oil processor, Wilmar International.
Goodman posted a narrower annual loss this week.
"It is surprising that a little whisper can create a share price movement," said Rickey Ward, domestic equities manager at Tyndall Investment Management. "Anybody can speculate but that company has gone through some tough times."
Telecom, the largest company on the NZX 50, fell 2.8% to $2.75. The stock has gained 32% so far this year and has a dividend yield of 10.9%.
"People have been chasing yields for 18 months or so," Mr Ward said. "Telecom falls into that camp – yesterday there was some aggressive buying."
Fletcher Building, New Zealand's largest construction company, shed 0.9% to $6.47.
Trade Me fell 0.5% to $3.85. Ellerston Capital, a fund manager controlled by Australian billionaire James Packer’s family interests, has emerged as a substantial holder of shares in New Zealand online auction site, with a 5.18% stake.
The gains were led by Pumpkin Patch climbing 13% to $1.03.
The children's clothing chain full-year profit before one-time items was about $10.1 million for the year ended July 31, beating estimates as bank debt and inventory levels fell and online sales rose.
The shares have soared 42% so far this year.
"It has tidied itself up a little bit, but it is a big move for one day," Mr Ward said.
AMP rose 5.6% to $5.65. The Australia-based insurer lifted its first-half net profit by 10% to $A383 million in the six months ended June 30, benefiting from its merger with AXA Asia Pacific.
SkyCity Entertainment Group, the Auckland-based casino and hotel operate, rose 2.8% $3.68 after lifting its annual profit by 8% to $141 million, meeting guidance, yesterday.
Cavalier, New Zealand's only listed carpet maker, rose 3% to $1.70.
Shares in Sanford fell 0.5% to $3.89. Managing director Eric Barratt says the Auckland-based fishing company will not decide whether to appeal a guilty verdict in a US court of dumping oil waste in waters around American Samoa and falsifying records until after sentencing in November.
Turners Auctions’ rose 4.2% to $1.73 after the vehicle auctioneers first-half net profit jumped 19% to $1.94 million as it recovered from earthquake-related disruption in Christchurch last year.