New Zealand shares slump

09 Jun, 2009

New Zealand shares fell 0.63 percent on Monday following a profit warning from Contact Energy and as a holiday in Australia muted local trading, dealers said. The NZX-50 index fell 17.89 points to 2,816.62 on thin turnover worth 57.7 million dollars (36.3 million US). There were 44 gainers and 38 losers among the 118 stocks traded.
Contact Energy's shares fell 13 cents to 5.67 dollars after the company said it expected full year underlying earnings to be 30 to 33 percent lower than in the year to June 2008, due to lower than expected wholesale electricity prices. "The profit downgrade put a bit of pressure on the share price," said Grant Williamson, director at Hamilton, Hindin, Greene. "It is not exactly unexpected," he added. Among other leaders, Fletcher Building fell six cents to 6.89 dollars and Telecom fell five cents to 2.56.
Infrastructure investor Infratil rose four cents to 1.74 dollars after the company said it had granted Australian private equity fund Archer Capital a call option over part of Infratil's shareholding in Brisbane-based Energy Developments. The call option totals 19.99 percent of the shares of Energy Developments, in which Infratil has a 32.1 percent stake.
Fishing company Sanford rose nine cents to 5.73 dollars on low volume, Pike River Coal added two cents to 1.22, and casino operator Sky City was unchanged at 2.76. Trust Power rose five cents to 7.90 dollars and clothing retailer Hallenstein Glasson rose 10 cents to 2.60. Fisher & Paykel Healthcare was down seven cents at 3.08 dollars, The Warehouse dropped two cents to 3.75, and New Zealand Oil & Gas was down three cents at 1.59.

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