Market close: Shares rise – Nuplex up after earnings, Chorus gains
BUSINESSDESK: New Zealand shares rose, paced by Nuplex Industries after the specialty chemical maker’s earnings growth stalled as it predicted. Chorus gained after the Commerce Commission backed off on plans to investigate the networks pricing.
The NZX 50 Index rose 22.46 points, or 0.64%, to 3639.65. Within the index, 36 stocks rose, 7 fell and 7 were unchanged. Turnover was a larger-than-average $130 million.
Nuplex rose 2.2% to $2.73 and has a dividend yield of 10.2%.
The shares rose as high as $2.83, the highest since October 2011 after the specialty chemicals maker said earnings before interest, tax, depreciation and amortisation were $131 million in the 12 months ended June 30, little changed from a year earlier.
"It was a pretty solid – it is a cheap stock which has a good dividend yield," says James Smalley, a broker at Hamilton Hindin Greene. "The result had no nasty surprises."
Chorus, the fixed-line telecommunications network operator which demerged from Telecom in November, rose 3.9% to $3.19.
The Commerce Commission has backed off the view that it needs to investigate a service on Chorus’s copper telecommunications network as it mulls the regulated pricing regime for the ageing lines.
Australia & New Zealand Banking Group 1.8% to $31.56 after it grabbed more local market share in the third-quarter, though increased competition for loans and deposits took some of the steam out of its margins.
Fletcher Building, New Zealand's largest construction company gained 1.2% to $6.55.
Caviler, New Zealand's only listed carpet maker, was up 2.9% to $1.75. Cavalier Wool Holdings is chasing a 64% stake in Wool Services International which was owned by the Allan Hubbard-related companies Plum Duff and Woolpack Holdings, which are in receivership.
The gainers were led by, PGG Wrightson, New Zealand's largest agricultural company, up 6.6% to $32 cents.
The decline was led by Telecom, the largest company on the exchange, down 2.5% to $2.68. The stock has fallen from its highest level since August 2008.
"One can only put the sell-off down to people locking in a few profits ahead of the result," he says.
Pumpkin Patch fell 1.9% to $1.01. That comes after the children's clothing retailer yesterday posted a full-year profit before one-time item of about $10 million yesterday, beating estimates.
Michael Hill International fell 0.9% to $1.08. The listed jewellery chain lifted its annual profit by 5.8% to $36.5 million in the year ended June 30 as recovering sales in New Zealand, Canada and the US made up for shrinking sales in Australia, which will be the current year's focus.
Duel listed APN New & Media, the publisher of the New Zealand Herald, Listener and New Zealand Woman’s Weekly, fell 8.3% to 50 cents on the NZX.
The media group tripled its first-half loss after writing down the value of its New Zealand publishing assets unit by $A485 million as part of an ongoing review.