Market close: NZ shares fall, Cavalier extends slide, Telecom up
New Zealand shares fell, led by Cavalier, which dropped to a three-year low following its profit warning last week.
New Zealand shares fell, led by Cavalier, which dropped to a three-year low following its profit warning last week.
BUSINESSDESK: New Zealand shares fell, led by Cavalier, which dropped to a three-year low following its profit warning last week.
Telecom rose after naming Auckland International Airport boss Simon Moutter as its new chief executive.
The NZX 50 Index fell 2.78 points, or 0.1%, to 3513.45. Within the index, 26 stocks fell, 16 rose and eight were unchanged.
Turnover was $75 million.
Cavalier, the only listed carpet maker, fell 6.4% to $1.77, the lowest close since May 2009.
The company said last week it may post a full-year loss as it takes steps to restructure its broadloom carpet business, ruling out any dividend payment.
Volumes and margins remain “under pressure”, it said.
"It is a tough world they are operating in and the earnings downgrade is still reflected in their share price," Craig Brown, senior investment analyst at One Path New Zealand, said.
“They are battling into headwinds."
OceanaGold, the operator of the Macraes gold field, fell 4.6% to $2.92 as spot gold hovered around $US1641.81 an ounce in Asia, from as high as $US1789 in late February.
Sky City Entertainment Group, the casino and hotel operator, fell 1.5% to $3.84.
Economic Development Minister Steven Joyce said no decision has been made yet on whether the government will agree to Sky City building a conference centre in Auckland in exchange for a lawn change that would allow it to run more slot machines.
Telecom rose 1.8% to $2.55.
Mr Moutter will return to the fold in September after leaving Telecom in 2008 for his current role as CEO of Auckland Airport, where is roles included chief operating officer.
“You’d be wary of attributing the movements of one person to the share price - I think it is certainly seen as being a positive for Telecom" that Moutter has been appointed, Mr Brown said.
Auckland Airport fell 0.2% to $2.51. Chair Joan Withers said the airport company would immediately begin a search for a replacement CEO.
Postie Plus Group, the clothing retailer, was unchanged at 28 cents, having gained 7.7% this year.
The company said today it expects to reap $4.1 million from the sale of its Babycity chain of stores.
The Christchurch-based company will ask shareholders on May 9 to sign off on a deal to sell 10 of the 17 Babycity stores, stock and forward orders.
Fletcher Building, the construction and building products company, rose 0.5% to $$6.17.
Contact Energy, the biggest power company on the NZX 50, fell 2.3% to $4.78.
Freightways, the courier and data management company, rose 3% to $4.12 and was the biggest gainer on the benchmark index today.