Article – BusinessDesk

Feb. 17 (BusinessDesk) – New Zealand shares rose, paced by companies that didn’t disappoint on earnings, including jeweller Michael Hill International and gold miner OceanaGold. Heartland New Zealand weakened after its results.

MARKET CLOSE: NZ shares rise; Michael Hill, OceanaGold climb after results

Feb. 17 (BusinessDesk) – New Zealand shares rose, paced by companies that didn’t disappoint on earnings, including jeweller Michael Hill International and gold miner OceanaGold. Heartland New Zealand weakened after its results.

The NZX 50 Index rose 2.55 points, or 0.1 percent, to 3289. Within the index, 20 stocks fell, 16 rose and 14 were unchanged. Turnover was $73 million.

Michael Hill rose 3.4 percent to 92 cents, adding to its 2.3 percent yesterday when the retailer posted an 11.5 percent increase in first-half sales as improved returns in New Zealand, Canada and the US made up for shrinking margins in Australia.

OceanaGold, which operates the Macraes gold field, rose 2.8 percent to $2.98. The gold miner reported record annual sales as the company benefitted from peaking world gold prices during the year. Earnings before interest, tax, depreciation and amortisation increased 17 percent to $163.9 million for the year ended Dec. 31.

“The next trade will be higher,” said Grant Williamson, a director at Hamilton Hindin Greene. “It was pretty much in line with what the market was expecting so no real reaction.

Cavalier was unchanged at $1.98. The stock has fallen from more than $2.30 before last week’s initial announcement from New Zealand’s only listed carpet maker of a 58 percent slump in first-half earnings. The decline largely reflected “very difficult and challenging” conditions in Australia and New Zealand.

Williamson said the earnings season has been “as expected, a real mixed bag. With stocks that have been punished “we are getting the bargain hunters coming back in.”

Goodman Fielder rose 4.9 percent to 64 cents, clawing back much of yesterday’s 6.2 percent decline following its 77 percent slump in first-half profit.

Fletcher Building, the biggest company on the exchange, fell 0.9 percent to $6.43. It is seen as a major beneficiary of activity related to the rebuild of Christchurch.

Mainfreight, another company punished for disappointing earnings this week, rose 1.3 percent to $9.44. Managing director Don Braid says the company is aware of its problem areas and working on fixing them.

Sky Network Television, the nation’s main pay-TV company, rose 1.2 percent to $3.66. The company today posted a 3.8 percent gain in first-half profit, reflecting rising subscribers to its My Sky set-top box, increased revenue per user on the back of new channels such as SoHo, and a pickup in advertising.

Freightways rose 1.1 percent to $$3.70. The courier and data storage firm on Monday posted a 20 percent gain in first-half profit. The shares have gained 12 percent in the past six months.

Australia & New Zealand Banking Group rose 0.9 percent to $27.70. Profit before provisions rose 6 percent to A$2.3 billion on a 5 percent lift in revenue to A$4.3 billion, the Melbourne-based bank reported today.

Heartland New Zealand, the lender which took on PGG Wrightson’s finance book last year, fell 2.1 percent to 47 cents following the release of its results after the market close yesterday. The finance company said net profit was $9.8 million – within its guidance of $9 million to $10 million.

Tenon fell 6.7 percent to 80 cents. After the close of trading today, the manufacturer of wood mouldings sold into the US DIY market reported a first-half net loss of US$6 million, which it blamed on weak US housing starts, a strong New Zealand dollar and one-time charges.

(BusinessDesk)

Content Sourced from scoop.co.nz
Original url