Contact and Fletcher lead market higher
New Zealand shares rose as Contact Energy posted stronger first-half earnings, and Fletcher Building and A2 Milk gained, while Vista Group International and Comvita fell.
The S&P/NZX 50 Index rose 31.07 points, or 0.4 per cent, to 7135.5. Within the index, 26 stocks rose, 17 fell and seven were unchanged. Turnover was $94.5 million.
rose 1.7 per cent to $4.87. It posted a 12 per cent gain in first-half underlying profit to $82m while holding its dividend unchanged and trimming capital expenditure in the face of weaker sales.
“Obviously they’re looking to continue to find operational improvements. Even though sales were broadly in line with what was
Contact Energy
expected, it highlights a tough retail market in that sector,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. “The market quite likes it, it’s up on a lowvolume day, though. It was a reason- able result, within expectations.”
led the index, up 2.4 per cent to $10.30. McIntyre said he was expecting Fletcher to report well, with recent bounces in the share price partly attributable to institutions trim-
Fletcher
ming their holdings. gained 2.4 per cent to rose 1.4
A2 Milk Genesis Energy
$2.60 and per cent to $2.17.
Property for Industry
gained 0.3 per cent to $1.62. The industrial property investor reported a record fullyear profit of $123.4m on higher revenue and lower costs and remained upbeat about the current financial year. Distributable profit, which strips out unrealised movements in the value of the property portfolio, was $34.1m, or 7.58c a share, 8.1 per cent higher than in the previous year.
“You’d expect for that quality of result that it would’ve got a share price uptick, there’s been a bit of profit taking in that sector in the past six months or so,” McIntyre said. “Their financial position remains strong and the Auckland industrial market remains really positive for them. In a low interest rate environment, where demand for industrial property is strong, they’ve performed very well.”
was the worst performer, dropping 2.5 per cent to $5.50, while fell 2.3 per cent to $6.72 and
declined 1.7
Vista Comvita New Zealand Refining
per cent to $2.83.
Outside the benchmark index, ASX-listed discount electronics retailer JB Hi-Fi gained 3 per cent to A$29.33. The company’s management is keeping an eye on the New Zealand business after first-half earnings halved on this side of the Tasman to $1m, as rising costs eroded the firm’s margins.