MARKET CLOSE: Shares fall, Diligent drops after first quarter, Nuplex gains on full year guidance lift

New Zealand shares fell led by Diligent Board Member Services after it reported its first quarter earnings. Nuplex Industries rose after it lifted its full year guidance.

The NZX 50 Index fell 1.722 points, or 0.03 percent, to 5746.231. Within the index, 23 stocks fell, 16 rose and seven were unchanged. Turnover was $105 million.

Diligent Board Member Services, the governance software firm, led the benchmark index lower, down 3.5 percent to $5.50. The company report a 14 percent increase in first quarter adjusted earnings before tax, depreciation and amortisation, of US$7.73 million. However, its cash and cash equivalents dropped US$5.6 million in the period to US$65.2 million after delays in invoicing as the company switched to a new system.

"It was a slight miss in terms of subscriptions additions and in terms of cash flow generated in the quarter," said Matthew Goodson, managing director at Salt Funds Management.

Meridian Energy, the partially privatised energy generator and retailer, fell 3.1 percent to $2.36. Genesis Energy declined 0.5 percent to $1.91. MightyRiverPower slipped 1.5 percent to $2.86.

Nuplex was the best performer on the benchmark index, advancing 3 percent to $3.48, paring an intraday 13 month high of $3.55. The specialty chemical maker lifted guidance for its full year earnings on the back of strong performance in Europe, growth in its Asia and North America markets and improvements in Australia and New Zealand. It now expects operating earnings before interest, tax, depreciation and amortisation to be between $130 million and $134 million in the 12 month period ending June 30, up from its February guidance range of $115 million to $125 million, and ahead of the $125.7 million it reported in 2014.

"In one sense it's not a surprise given that you can see input costs were tracking more favourably," Goodson said. "Europe was tracking quite well. There are some reasonably favourable backdrops for the business at the moment."

Fletcher Building advanced 1.8 percent to $8.65. The construction and building supplies firm has big exposure to the Australian market and the drop in the kiwi dollar against its trans-Tasman counterpart was good for the company, Goodson said. Outside the stock exchange, Rank Group, owned by billionaire Graeme Hart, confirmed plans to sell down its stake in building products supplier Carter Holt Harvey, a rival to Fletcher, in an initial public offering, and to list the shares on the New Zealand and Australian stock exchanges.

Ebos, the healthcare and animal care products company, advanced 1.9 percent to $9.47 as traders awaited the outcome of the Australian Federal Budget, which has rumoured changes it its pharmaceutical benefits scheme. Ebos transformed itself with the June 2013 purchase of Australian pharmaceutical wholesaler and distributor Symbion, and now gets 82 percent of earnings in Australian dollars.

"There have been a lot of leaks ahead of the budget about the Australian government looking to save a lot of money in the area of pharmacy drug distribution, which could affect Ebos," Goodson said.

Spark New Zealand, formerly Telecom Corp, rose 1.4 percent to $2.87.

(BusinessDesk)