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NZ shares rise, Fletcher, Contact gain

NZ Newswire logoNZ Newswire 13/02/2017 Sophie Boot

New Zealand shares rose on Monday as Contact Energy posted stronger first-half earnings, and Fletcher Building, A2 Milk Co gained, while Vista Group International and Comvita fell.

The S&P/NZX 50 Index rose 31.07 points, or 0.4 per cent, to 7,135.5. Within the index, 26 stocks rose, 17 fell and seven were unchanged. Turnover was $94.5 million.

Contact Energy rose 1.7 per cent to $4.87. It posted a 12 per cent gain in first-half underlying profit to $82 million while holding its dividend unchanged and trimming capital expenditure in the face of weaker sales.

"Obviously they're looking to continue to find operational improvements, even though sales were broadly in line with what was expected it highlights a tough retail market in that sector," said Peter McIntyre, an investment adviser at Craigs Investment Partners. "It was a reasonable result, within expectations."

Fletcher led the index, up 2.4 per cent to $10.30. McIntyre said he was expecting Fletcher to report well, with recent bounces in the share price partly attributable to institutions trimming their holdings.

A2 Milk gained 2.4 per cent to $2.60 while Genesis Energy rose 1.4 per cent to $2.17.

Property for Industry gained 0.3 per cent to $1.62. The industrial property investor reported a record full-year profit of $123.4 million on higher revenues and lower costs and remained upbeat about the current financial year.

Vista was the worst performer, dropping 2.5 per cent to $5.50, while Comvita fell 2.3 per cent to $6.72 and New Zealand Refining Co declined 1.7 per cent to $2.83.

Outside the benchmark index, ASX-listed discount electronics good retailer JB Hi-Fi gained 3 per cent to A$29.33. The company's management is keeping an eye on the New Zealand business after first-half earnings halved on this side of the Tasman to $1 million, as rising costs eroded the firm's margins.

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