NZ shares fall on #Fonterra provision

Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on email

New Zealand shares fell further from near a record high as Fonterra Cooperative Group flagged a provision against inventories, while Kiwi Income Property Trust rose after announcing the price to buy back its management contract.
 
The NZX 50 Index fell 29.189 points, or 0.6 percent, to 4922.172. Within the index, 30 stocks fell, 16 gained and four were unchanged. Turnover was $113 million.
 
Fonterra Shareholders’ Fund units declined 2.9 percent to $6.62. The dairy company said it has taken a $157 million provision against inventory of specialised ingredients and branded consumer products produced by its largest NZ Milk Products division because rising input costs squeezed margins.
 
“It is more or less a bit of a profit realignment,” said Bryon Burke, head of equities at Craigs Investment Partners. “It was negative news from the company and the price has fallen accordingly.”
 
Fletcher Building, the biggest company on the NZX 50, fell 1.6 percent to $9.48, helping drag the index lower. Auckland International Airport fell 1.9 percent to $3.53.
 
Chorus rose 2.8 percent to $2.055, halting last week’s slide in the wake of the regulator’s decision to lower the prices the network operator can charge. Telecom, one of Chorus’s customers, fell 1.3 percent to $2.32.
 
Kiwi Income gained 0.9 percent to $1.11. Independent directors of the trust’s management company today said they support a proposal from the manager’s owner, Commonwealth Bank of Australia, which would see the trust internalise its management at a cost of about $70 million.
 
“That’s pretty positive by the looks of it – earnings positive,” Burke said.
 
Among other property investors, Goodman Property Trust fell 0.5 percent to $1.025 after saying it was considering the sale of $100 million of bonds. DNZ Property Fund fell 1 percent to $1.56 and Precinct Properties New Zealand fell 1.5 percent to 98 cents.
 
Kathmandu, the outdoor equipment chain, rose about 4 percent to $3.92 and was the biggest gainer on the benchmark index.
 
Fisher & Paykel Healthcare rose 2.4 percent to $3.83.
 
TrustPower edged up 0.2 percent to $6.63 after saying 2014 earnings will lag behind 2013. Infratil, which controls TrustPower, fell 1 percent to $2.46.
 
Dorchester Pacific was unchanged at 23 cents after posting a return to first-half profit as revenue almost tripled, while holding off on dividends as it eyes acquisitions.
 
Warehouse Group rose 1.3 percent to $3.85 as analysts at Craigs Investment Partners rated the stock a ‘buy’ and said growth in first-quarter sales may be evidence that it is gaining market share.
 
Source:Scoop

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

Te puede interesar

Notas
Relacionadas