MARKET CLOSE: NZX 50 falls; SkyCity, Telecom, FBU dominate

MARKET CLOSE: NZX 50 falls; SkyCity, Telecom, FBU dominate

Dec.10 (BusinessDesk) - New Zealand shares fell, in a day dominated by trading in SkyCity Entertainment Group, Telecom Corp. and Fletcher Building Ltd. following on from reported portfolio changes yesterday.

The NZX 50 Index fell 7.63, or 0.2%, to 3272.92. Within the index, 23 stocks fell, 11 rose and 16 were unchanged. Turnover was $210.3 million, marking it as one of the biggest days this year.

SkyCity ended unchanged at $3.13 in a session where 25.8 million shares, or 4.5% of the company traded. The company said in an investment briefing released today that it is on track to meet its guidance for 2011 of at least $127.4 million, with a boost expected to come from the Rugby World Cup.

“We’ve been very encouraged by SkyCity, with the Rugby World Cup coming up,” said Adrian Vance, an adviser at brokerage Hamilton Hindin Greene. “It all looks good.”

Telecom fell 0.5% to $2.08., with 70.3 million shares traded, amounting to 3.7% of the stock on issue.

Fletcher was unchanged at $7.82, with 2.5 million shares traded.

Canterbury Building Society rose 1.8% to $2.85 after its depositors gave the thumbs up to the $2.2 billion merger with Pyne Gould Corp.'s Marac finance unit and South Cross Building Society, the final hurdle for the new entity seeks a banking licence and re-appears on the NZX as a locally owned lender.

Pyne Gould was unchanged at 38 cents. The new group, Building Society Holdings Ltd., plans to launch in early January and seek an NZX listing in February with the final milestone an application for a banking license around the middle of next year.

“We firmly believe the merger is a compelling value enhancing proposition for members and shareholders that would not otherwise be available to each of us on a standalone basis," said Building Society chairman Bruce Irvine.

Fisher & Paykel Healthcare Corp., the respirator and breathing mask manufacturer, fell 0.3% to $3.14, while Rakon Ltd., the maker of crystal oscillators used in cellphones, was unchanged at $1.18 after they were both awarded $7 million dollars in research and development funding under the government's new Technology Development Grant Programme.

Scott Technology, the mining equipment manufacturer, was another company that won $3.8 million in funding under the initiative. Shares were unchanged at $1.21.

Guinness Peat Group, the investment holding company, was unchanged at 70 cents after boardroom veteran Ron Brierley stepped from his position as chairman, but will remain on as a non-executive director.

Brierley foreshadowed his exit in 2008, saying he planned to step down this year, though this was put off as the company struggled to make a return to shareholders. Mark Johnson, one of four independent directors brought in to help develop a new strategy for the ailing investment company in September, will assume the chair.

(BusinessDesk)

© Scoop Media