The New Zealand Herald

Shares slip in ‘phony war’ before results

Building, glass companies lead stock down

- — BusinessDe­sk

New Zealand shares fell ahead of earnings season which begins today, with Metro Performanc­e Glass and Fletcher Building down while SkyCity Entertainm­ent Group and Scales Corp rose.

The S&P/NZX 50 Index fell 0.78 of a point, or 0.01 per cent, to 7066.27. Within the index, 24 stocks dropped, 22 rose and four were unchanged. Turnover was $115 million.

“It’s a bit of a phony war awaiting results season,” said Matt Goodson, managing director at Salt Funds Management. “The December quarter was quite weak for the New Zealand market, and really what was driving that was a sharp rise in bond yields from all-time record lows, and the heavy weighting of bond, property type stocks in our market, then January was really a bit of a rebound.”

led the index lower, down 3.2 per cent to $1.50. The Auckland-based company,

Metro Performanc­e Glass

which has more than half the country’s glass-processing market, saw its shares plunge 18.5 per cent last Friday after saying annual net profit was likely to be similar or even lower than the prior year’s $20.5m as local sales lagged behind expectatio­ns and costs were higher than expected. dropped 2.8

fell 2

Fletcher Building Metlifecar­e Heartland

per cent to $10.11, per cent to $5.45, and declined 1.3 per cent to $1.56.

was the best performer, up 4.2 per cent to $3.74 ahead of its earnings announceme­nt today. The stock had been sold off sharply in the past few days with investors nervous before the result, Goodson said.

rose 3.3 per cent to

Bank SkyCity Scales Corp Australia & New Zealand Banking Group

$3.47, advanced 2.3 per cent to $30.59, and Westpac gained 1.9 per cent to $33.78. gained 0.5 per cent to $2.88. In a market update, the infrastruc­ture investor was upbeat about

Corp Infratil Banking

its investment in United States renewable energy developmen­t company Longroad Energy Holdings, despite President Donald Trump’s election promises to boost coal.

Spark New Zealand

dipped 0.4

Fliway Group Hellaby TeamTalk

per cent while fell 1.3 per cent to 74c. TeamTalk says a proposed $22.7m takeover offer from Spark is hostile, highly conditiona­l and recommende­d shareholde­rs take no action pending further communicat­ion from the board. Outside the benchmark index,

dropped 3.4 per cent to $1.13. First-half profit dropped 39 per cent to $2.2m as the impact of a major customer’s exit and higher freight costs caused by last November’s Kaikoura earthquake weighed on the transport and logistics group.

The transport group expects its second-half performanc­e will be an improvemen­t on the prior year, with sales growth a priority as it “looks to sell to capacity in its network and increase relationsh­ips with existing customer and business partners”.

was un-

Holdings

changed at $3.57.

It will delist from the NZX by March 8, after ASX-listed vehicle-parts company Bapcor succeeded in its $352m takeover of the diversifie­d investment group this month.

 ??  ?? Fletcher Building dropped 2.8 per cent to $10.11.
Fletcher Building dropped 2.8 per cent to $10.11.

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