Kathmandu stars in flat NZ sharemarket
The outdoor retailer's shares surged 14% after it tipped a 20-26% rise in interim earnings from a strong sales performance over the holiday period.
A surge in Kathmandu shares was a standout in an otherwise flat sharemarket, with the NZX-50 index closing up 2.278 points, or 0.1%, at 3346.017.
Turnover was worth $68.1 million. There were 40 rises and 34 falls among the 115 stocks listed.
Kathmandu Holdings (NZX:KMD) closed up 14% today, rising 25c to 205, after the company tipped a 20-26% rise in interim earnings from a strong sales performance in December and this month.
Brokers are updating their forecasts for Kathmandu's annual result in reaction to today's statement.
"They are not saying what the gross margin is but we have got high currencies in both Australia and New Zealand and clearly that is part of the story," one broker said.
The retailer imports product from China. The broker said that winter was the company's biggest sales period. "The second half will be important for them."
Kathmandu's share price traded to 210 today, which is a five-month high. The share price is near the price investors paid when the company listed on the ASX and NZX in November 2009.
The Warehouse, which experienced poor trading in the two months to January 2, rose 2c to 364 today but is down from around 450 in November 2009.
Another standout today was NZ Refining Co, which rose 12c to 468.
Among the leaders, Fletcher Building fell 1c to 785, and Contact Energy fell 9c to 625, while Telecom rose 1c 228.
Sanford rose 15c to 470, Hellaby rose 5c to 225 and Auckland Airport rose 3c to 224. NZX rose 5c to 173 and Rakon rose 3c to 125. Infratil rose 1c to 194.
Goodman Fielder rose 1c to 169.
Freightways fell 6c to 323 and Methven fell 5c to 169. Hallenstein Glasson fell 5c to 405 and Cavalier Carpets fell 5c to 320. Air NZ fell 2c to 143 and Tower fell 1c to 199.
The local market's flat performance contrasted with strong markets in Asia. Sentiment is said to have improved in reaction to positive comments from European finance ministers and stronger-than-expected results from US companies.
NZPA
Wed, 19 Jan 2011
Wed, 19 Jan 2011
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Kathmandu stars in flat NZ sharemarket
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