MARKET CLOSE: NZ stocks fall; Nuplex leads decliners

MARKET CLOSE: NZ stocks fall; Nuplex leads decliners, Auckland Airport

By Jason Krupp

July 6 (BusinessDesk) - New Zealand stocks fell for a second session, with Nuplex Industries Ltd. leading decliners on the exchange after rivals downgraded their earnings. Auckland International Airport Ltd. rose.

The NZX 50 Index fell 12.76 points, or 0.4%, to 3,460.82. Within the index, 20 stocks fell, 14 rose, and 16 were unchanged. Turnover was $137.4 million.

The New Zealand stock market was one of the worst performers across the Asia Pacific region today, with Australia Australia's S&P/ASX 200 recently trading 0.3% higher at 4,611.5, Japan's Nikkei 225 Index up 0.2% at 9,992.61, and Singapore's Straits Times Index up 0.1% to 3,133.48.

"The New Zealand market's been a really strong performer recently, with the underlying economy conducive to positive earnings growth but we just seem to have run out of puff today," said Shane Solly, a portfolio manager at Mint Asset Management.

Nuplex, the industrial chemicals and resins manufacturer, fell 3.5% to $2.80.

Two of the company's international rivals have recently revised their earnings estimates downwards, citing weak demand from developed markets and rising material costs, and the market expectations are high that that Nuplex could follow suit, Solly said.

Fletcher Building Ltd., the country's biggest construction firm, fell 1.8% to $8.41, near a five-month low, with the delayed rebuild in Christchurch weighing on analysts' earnings forecasts.

Fisher & Paykel Appliances Holdings, the whiteware manufacturer, fell 1.7% to 59 cents.

Heartland New Zealand Ltd., the would-be bank formed by the merger of Marac and the Canterbury and Southern Cross building societies, fell 1.5% to a historic low of 67 cents.

Westpac Banking Corp., the Australian lender, fell 0.9% to $28.30 on the NZX after a report by Japanese investment bank Nomura claimed future earnings of the major Australian banks may remain under pressure for the next few years. The stock was 0.1% weaker at A$21.92 on the ASX.

Nomura is the second major investment bank in a week to downgrade the earnings forecasts, after UBS also cut profit projections.

Australia & New Zealand Banking Group, the nation's biggest lender, fell 0.3% to $28.32 on the NXZ, and recently traded 0.2% lower at A$21.89 in Australia.

Guinness Peat Group, the investment holding company, has had its share cancellation scheme signed off by the U.K. High Court today, paving the way for a capital return of $158 million.

The scheme will see it cancel about 227.9 million shares of 5 pence apiece in exchange for payment of 35.07 pence per cancelled share. The move comes after shareholders voted in favour of the return at its June 8 annual meeting.

The shares, which resumed trading on the NZX today, closed at 79 cents, unchanged from when they were halted on June 29.

Auckland International Airport Ltd., the country's busiest gateway, rose 1.6% to $2.29, leading gainers on the exchange.

The company yesterday granted chief executive Simon Moutter two million 'phantom' options and agreed to a one-time retention payment of $750,000 if performance targets are met.

Port of Tauranga Ltd., the country's biggest export hub, rose 1.5% to $9.25.

Goodman Property Trust, the listed property investment vehicle, rose 1% to 98 cents.

Telstra Corp., the Australian phone company, today announced a shake-up of its internal structure and make a number of key appointments in preparation for the Federal Government's National Broadband Network rollout.

The telco recently signed an $11 billion deal to lease out its fixed-line network, making NBN Co. the company's biggest wholesale customer.

Under the changes, Telstra will consolidate its sales and retail customer workforce into a single business unit, appoint a permanent managing director of its wholesale unit, and launch a new technology research and investment unit. The shares rose 0.3% to $3.81 on the NZX.

Wakefield Health, the Wellington-based private health provider, was unchanged at $5.40 after it upped its offer to buy Norfolk Investments for a second time in a bid to gain a stake in Tauranga’s Grace Hospital.

The company offered Norfolk shareholders $3.80 a share, valuing the company at $24.23 million. Wakefield says it has more than 70% of shares committed to accepting an offer, and will make a formal bid on July 20.

(BusinessDesk)

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