MARKET CLOSE: NZ stocks extend decline; APN falls

MARKET CLOSE: NZ stocks extend decline from 28-month high; APN falls, Cavalier rises

By Jason Krupp

Jan. 17 (BusinessDesk) - New Zealand shares fell, extending the NZX 50 Index’s decline from a 28-month high for a second session, as investors anticipate a spike in inflation in data this week. APN News & Media Ltd. led decliners and Cavalier Corp. gained.

The NZX 50 fell 15.59 points, or 0.5%, to 3354.3. Within the index 24 stocks fell, 13 rose, and 13 were unchanged. Turnover was $63.4 million.

The consumer price index rose 2.3% in the fourth quarter, according to a Reuters survey. The increase mainly reflects October's 2.5% GST increase and higher petrol prices. The figures are due out on Thursday. Stocks fell even after shares on Wall Street rose on Friday, with the Standard & Poor’s 500 index climbing 0.7%. U.S. markets are closed Monday for the Martin Luther King Jr. holiday.

"We are down despite quite a few strong leads from international markets," said Karl Williscroft, a trader with Direct Broking. "This week all eyes are on CPI."

APN, publisher of the New Zealand Herald and operator of the Radio Network, fell 7% to $2.40. The dual-listed company has steadily been downsizing its printing facilities, the most recent of which saw the Commerce Commission okay PMP Print Ltd.'s bid to buy the company's Manukau heat set printing assets.

Michael Hill International Ltd., the jewellery manufacturer and retailer, fell 2.3% to $1.25. Durante Holdings, which represents the founding Hill family, today again reiterated its partial takeover offer for a 5% stake in the company at 90 cents a share. If successful, the deal would give the family control over the company with a 50.2% shareholding.

AMP Ltd. fell 0.6% to $6.66 on the ASX, and was unchanged at A$5.18 on the ASX. The Australian wealth manager's A$13.3 billion bid for rival Axa Asia Pacific Holdings today got the thumbs up from the deal's independent expert report, which said the buyout would be the best interests of minority shareholders.

Grant Samuel's report was more circumspect about the French parent Axa SA’s acquisition of the company’s Asian business, though declared it a “fair and reasonable” offer. Under the proposal, AMP will buy the entire unit and sell back the Asian businesses to the French parent. Axa shareholders will vote on the proposal in March.

Cavalier, New Zealand's only listed carpet maker, rose 3.5% to $3.25, pacing gainers on the exchange. The company was 15th best performing on the NZX 50 last year, with share gaining 10.4% in the past 12-months.

New Zealand Oil & Gas Ltd., the energy exploration and production company, rose 1.2% to 87 cents as oil prices continued to track towards the US$100 mark. Brent Crude was last trading at US$99.74, its highest level in 27 months.

Warehouse Group, New Zealand's biggest listed retailer, rose 0.8% to $3.59.
The company said today that chief executive Ian Morrice indicated he wants to retire this year though a final decision hasn't been made. The retailer said his departure isn't linked to its poor performance in recent months.

"An announcement on succession in the CEO role will be made in due course, as and when the matter is determined," the company said.

(BusinessDesk)

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