MARKET CLOSE: NZ stocks fall; CAV, FBU, MHI go ex

MARKET CLOSE: NZ stocks fall as CAV, FBU, MHI, and NPX go ex-dividend

By Jason Krupp

Sept. 29 (BusinessDesk) – New Zealand stocks fell for the second time in three sessions, as the market was weighted down by companies going ex-dividend such as Cavalier Corp., Fletcher Building Ltd., and Nuplex Industries Ltd.

The NZX 50 Index fell 3.3 points, or 0.1%, to 3,226.8. Within the index, 12 stocks fell, 26 rose and 12 were unchanged. Turnover was $72.8 million.

Nuplex, the industrial chemical and resin manufacturer, fell 3.8% to $3.26, Cavalier Corp., New Zealand’s only listed carpet maker, fell 2.8% to $3.11, Fletcher Building, the national biggest construction company, fell 2.8% to $8.35. Michael Hill, the jewellery manufacturer and retailer, fell 1.4% to 69 cents.

“The market is looking weak, weighed down by the number of companies that went ex-div today,” said Karl Williscroft, a trader a Direct Broking. “Their performance is only related to their dividend payments though, which is making it look a lot worse that it is. If you factor that out they haven’t done too badly on the day.”

NZ Farming Systems Uruguay Ltd., the South America dairy operator, fell 6.1% to 62 cents, pacing decliners on the NZX 50. The stock has started to ease back from the 70 cents level it has hovered around since Aug. 24, after the offer from Olam International closed, with the Singaporean commodities company now controlling 78% of shares.

The company released an independent appraisal report on internalizing its management contract, which concluded it is a fair deal for shareholders not associated with PGG Wrightson.

Pyne Gould Corp., the financial services company vying to become a bank, rose 2.4% to 42 cents, leading gainers on the exchange. Telecom Corp., New Zealand’s biggest telephone company, rose 2% to $2.08, APN News & Media Ltd., which publishes the NZ Herald and operates the Radio Network, rose 1.9% to $2.66, and Rakon Ltd., the maker of crystal oscillators used in cellphones and GPS units, rose 1.6% to $1.27.

Abano Healthcare Group, the dental, radiology and audiology business, rose 1.5% to $5.28 after the company said it is mulling options to return capital to shareholders after making a cash profit of $26 million on the sale of its stake in Australia's National Hearing Care.

Telstra Corp., the Australian telephone company, was unchanged at $3.50 after chief executive David Thodey released notes for a briefing on its plans to spend A$1 billion on mobile handsets. Based on current performance, Telstra could "comfortably continue to pay shareholders an annual dividend of 28-cents per share should the board elect to do so in its regular reviews," given the company's strong free cash flow, he said.

Shares in Allied Farmers rose 11.5% to 3 cents after the company which unsuccessfully tried to transform itself into a major lender sold off a former Hanover loan to an undisclosed party. The deal, which concludes next week, will pay off its outstanding debt to Westpac, after which it will give an update on its funding arrangements.

Sanford Ltd., the listed fishing company, rose 1% to $4. The company has applied for clearance from the Commerce Commission to acquire the Pacifica Seafoods Group of companies.

(BusinessDesk)

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