Fletcher profit jump leads index higher
S&P/NZX 50 up 0.6% on $175.3m turnover
New Zealand shares rose on Fletcher Building’s positive annual earnings and outlook, while NZX fell after posting first-half results that included costs of its legal battle with Ralec.
The S&P/NZX 50 Index gained 44.34 points, or 0.6 per cent, to 7355.01. Within the index, 27 stocks rose, 13 fell and 11 were unchanged. Turnover was $175.3 million. The index was led higher by
up 4.9 per cent to $10.16. The building and construction company posted a 71 per cent gain in full-year profit and met its earnings guidance, driven by an improved performance in Australia and gains in its New Zealand distribution, residential and construction divisions.
It’s forecasting a strong uplift in underlying earnings for 2017 in the range of $720 million to $760 million, mainly on the back of a boom in Auckland residential construction.
Rickey Ward, NZ equity manager
cher Building, Flet-
at JBWere, said the share price had weakened heading into the result as a broker had downgraded their recommendation, but the earnings yesterday had seen a recovery.
“The result . . . indicated the benefits of the last two to three years, of focus on restructuring Fletcher into a cleaner operation with better controls is finally paying dividends,” Ward said.
“Pleasingly, it signals finally that the downgrade cycle is over — we’re moving into a company which has a management team which is hellbent on delivering growth to a business which has lacked it for a while now.
“The outlook’s pretty positive — unusually, guidance was provided, and it doesn’t seem unrealistic.”
gained 2.9 per cent to
Metlifecare New Zealand Refining
$6.07 and advanced 2.8 per cent to $2.56. rose 2.8 per cent gained $2.88, and
Heartland Bank Warehouse Group
to $1.48, 2.5 per cent to
Freightways
$6.81.
NZX
was up 2 per cent to
was the worst performer, down 1.9 per cent to $1.02. The market operator’s first-half profit fell 80 per cent as costs related to the ongoing Ralec litigation offset gains in oper- ating revenue. “I think people are looking at the outlook comments — we’re going through a period of a little bit of stagnation in volumes, or liquidity, with limited scope for new IPOs,” Ward said. “Some people are saying they’ve been through a sweet spot and it’s more difficult going out from here.”
Kiwi Property Group Nuplex Industries, Trade Me Group Patch
advanced 1 per cent to $1.575.
The country’s biggest listed property investor plans to build an $80 million office tower as part of a broader development of the Sylvia Park retail centre in Auckland.
which is in the process of being taken over by Allnex Belgium, rose 0.4 per cent to $5.35.
The company posted a 19 per cent gain in annual profit as earnings lifted across all its key markets.
Fisher & Paykel Healthcare
dropped 1.2 per cent to $10.48 and
fell 1 per cent to $5.14 ahead of its earnings report today. Outside the main index,
shares spiked 60 per cent to 12c. The childrenswear retailer has maintained its earnings guidance for the year ended July 31, and said it had seen a “pleasing second half performance”, though it’s still considering further restructuring and is looking for more “flexibility” from its lenders.
Pumpkin