Index mixed as Fletcher Building dives
Infratil, Investor, Kathmandu lead gains
New Zealand shares were mixed as Fletcher Building plunged 9.3 per cent after the company unveiled further provisions at Building + Interiors (B+I) that bring two-year losses at the unit to $952 million.
The S&P/NZX50 Index fell 63.42 points, or 0.8 per cent, to 8058.8. Within the index, 23 stocks rose, 20 fell and seven were unchanged. Turnover was $226m.
Fletcher Building fell 9.3 per cent to $7.05. Ralph Norris will step down as chair after the company took a further $486m provision for project losses at its B+I unit and said 14 of the unit’s 73 projects, worth $2.3b, are loss-making or “on watch”.
It said it has obtained a waiver from its commercial banking syndicate after breaching the terms of its loans, and aims to finish renegotiations by the end of March.
Metro Performance Glass dropped 4.5 per cent to 85 cents and Restaurant Brands New Zealand fell 2.6 per cent to $7.15.
Infratil was the best performer, up 2 per cent to $3.14, with Investore Property rising 1.4 per cent to $1.43 and Kathmandu Holdings gaining 1.3 per cent to $2.34.
Genesis Energy gained 0.4 per cent to $2.39. Synlait Milk gained 0.2 per cent to $6.62. It has signed a new five-year supply agreement for increased volumes of packaged infant formula with its cornerstone shareholder Bright Dairy.
CBL Corp remained in a trading halt at $3.17. It is hiring advisers to sell the French construction insurance division which has seen it fall foul of regulators over solvency concerns, and is pursuing legal action against the vendors of Securities and Financial Solutions Europe SA (SFS).
— BusinessDesk