Business news
You are here: ninemsn > Money > Business news

NZ stocks fall on disappointing results

16:06 AEST Thu Feb 21 2013
Related articles

New Zealand shares fell on Thursday, pushing the NZX 50 Index to a one-month low as Skellerup Holdings and Nuplex Industries missed profit expectations and cut guidance, and Fletcher Building continued its correction following its results on Wednesday.

The NZX 50 fell 43.81 points, or 1 per cent, to 4170.4, the lowest close since Jan 18. Within the index, 26 stocks fell, 12 rose and 12 were unchanged. Turnover was a higher than average $193 million.

Industrial rubber goods maker Skellerup fell 6.7 per cent to $1.53 after reporting an 18 per cent slump in first-half profit to $9.5 million, missing expectations, and cutting its annual earnings forecast to $20 million.

Nuplex, the specialty chemicals maker, fell 4 per cent to $3.33 after posting first-half profit that more than halved to $11.5 million and cutting its annual guidance, blaming the strength of the currency and weak trading conditions in Australia and Europe.

Fletcher Building, which missed some analyst estimates on weak trading in Australia, fell 3.6 per cent to $8.55.

"The market got ahead of itself on expectations and companies are missing those expectations," said Grant Williamson, a director at Hamilton Hindin Greene.

"The market is realigning back to healthier levels. It's a healthy correct."

OceanaGold, operator of the Macraes gold field, dropped 10 per cent to $2.61 as the price of spot gold fell to a seven-month low.

Port of Tauranga, the nation's busiest export port, rose 0.3 per cent to $13.85 after reporting record first-half earnings on increased export volumes.

AMP climbed 2.4 per cent to $6.76 after reporting a 2.3 per cent gain in full-year net profit to A$704 million.