12.15pm
Shares in The Warehouse plunged 5 per cent in early trading on the New Zealand sharemarket today after the retailer reported another disappointing annual result.
But after dropping 23c when the market opened, the stock recovered by late morning to be down only 10c at 430 -- on light turnover of
116,000 shares.
Australian business losses had dragged down The Warehouse's net profit by 18.9 per cent lower to $61.2 million for the year ended July. This followed an 8 per cent drop the previous year.
Bryon Burke, of ABN Amro Craigs, said The Warehouse's negative movement on light turnover reflected the market generally.
Overseas influences had also been negative.
But at 11.30am the benchmark NZSX-50 gross index was down by only 6.87 points to 2744.26 and the NZSX-All capital index down 2.59 points at 914.28.
Overall turnover of $39.6 million was dominated by market heavyweight Telecom, which eased 1c to 566.
With the New Zealand dollar approaching its all-time high against the aussie dollar, Mr Burke said stocks listed in both countries were down.
"The dual-listed stocks are at the same closing prices they had in Australia. The strong New Zealand dollar makes them worth a bit less here," he told NZPA.
Among the Australian-based companies, ANZ Banking Group eased 3c to 1975, Telstra 4c to 512 and AMP 6c to 668.
Other leading stocks to drop included Carter Holt Harvey down 1c to 233, Fisher & Paykel Healthcare 1c to 1360, Fletcher Building 5c to 560, Sky City 3c to 459 and Tower 1c to 202 -- all losing some of yesterday's gains -- while Baycorp Advantage lost 3c to 340.
Having retreated 18c yesterday Lion Nathan shed another 7c to 735 this morning, amid rumours it has finally lost patience with its Chinese unit after writing off tens of millions of dollars on its investment.
- NZPA
