MARKET CLOSE: NZ shares mixed; Michael Hill up, ANZ falls
Feb. 5 – New Zealand shares were mixed, with Australia & New Zealand Banking Group leading decliners on the NZX 50 Index, while Michael Hill International advanced.
The NZX 50 Index gained 4.877, or 0.2%, to 2773.495 in light trade before the Waitangi Day public holiday. Within the
index, 18 stocks rose, 20 fell and 12 were unchanged. Turnover was NZ$41.3 million.
Michael Hill rose 3.9% to 53 cents and has a discounted cash flow valuation of 82 cents, according to the Value
cruncher online tool. Retailers with stores in Australia gained after the federal government yesterday announced a A$42
billion fiscal stimulus package that may help stoke consumer spending. Pumpkin Patch, which counts Australia as its
biggest market, rose 1.1% to 93 cents.
The exception was clothing chain Hallenstein Glasson Holdings, which fell 1.8% to NZ$2.16, its second daily decline
after announcing first-half profit tumbled as much as 41% as sales fell and competition for sales shrank its margins.
Fishing company Sanford Ltd. rose 2.8% to NZ$5.55 and is little changed so far this year after being the biggest gainer
on the NZX 50 in 2008. Mainfreight Ltd. rose 2.6% to NZ$4 and Telecom Corp. climbed 2.3% to NZ$2.70.
Figures today showed the unemployment rate jumped to a five-year high 4.6% in the fourth quarter, less than the 4.7%
median estimate in a Reuters survey.
The New Zealand Manufacturers and Exporters Association Survey of Business Conditions, released today, showed total
sales in December 2008 increased 4% from the same month a year earlier. Staff numbers fell 0.7% in the month, while net
confidence recovered to -73 from -82 in October.
In Australia, the S/ASX 200 Index fell 0.3% to 3428.6. Qantas Airways tumbled 18% to A$1.87 and Lend Lease dropped 16% to A$5.66 after the
two companies sold new shares at a discount.
BHP Billiton rose 6% to A$31.62 and Rit Tinto climbed 7% to A$47.40, pacing a rally in mining companies after China
announced tariff cuts on imports of raw materials and components.
Macquarie Group rose 5.5% to A$24.13 after Australia’s largest investment bank said annual profit will tumble 50%, the
first time earnings have dropped in 17 years, on trading losses and a slump in investments. The prediction was better
than some investors had expected.
In Japan, the Nikkei 225 Index fell 1.3% to 7937.32.
(Businesswire)