Investors punished adventure wear retailer Kathmandu today for not obtaining the goals it set when selling shares last year.The stock strode ahead on its market debut last November, but today it plunged 11.2% on news it will miss prospectus forecasts by 5
Investors punished adventure wear retailer Kathmandu today for not obtaining the goals it set when selling shares last year.
The stock strode ahead on its market debut last November, but today it plunged 11.2% on news it will miss prospectus forecasts by 5-7% due to a difficult second half.
The low during the session of 178 is a record low. The stock closed down 23c at 182, well below the 213 investors paid last year.
Though it is a small stock, it was a sour note for the market on the eve of the local corporate reporting season.
Asian sharemarkets were also generally weaker today on profit-taking.
The benchmark NZX-50 index closed down 12.251 points, or 0.4%, at 3038.134. Turnover was worth $78.4 million. There were 26 rises and 43 falls among the 111 shares traded.
James Snell, director of institutional equities at First NZ Capital, said it was disappointing to see the Kathmandu earnings downgrade but the company's winter sale had not been up to expectations.
"It shows that apparel retailers are very dependent on weather and consumer spending," he said. Kathmandu is particularly dependent on three sale events each year.
Investors are also wary of competition from Kathmandu founder Jan Cameron when her restraint of trade ends.
Telecom fell 1c to 201 after the government confirmed it will regulate the fees mobile telephone companies charge each other in a bid to improve competition.
Mr Snell said the move had been expected and volume was reasonably light in Telecom.
He said there was reasonable volume in property stocks and some investors may be reducing holdings to participate in a capital raising by DNZ Property.
AMP NZ Office Trust rose 2c to 72 after announcing a 2.5% rise in full year profit yesterday. ING Property rose 1c to 69 and Goodman Property was unchanged at 93.
Fletcher Building fell 3c to 757 and Ebos fell 7c to 643. Sanford fell 1c to 400. SkyCity fell 1c to 302.
NZX fell 4c to 146 on a day it confirmed the implementation of a new fee structure.
APN News fell 5c to 260 after WAN newspapers' result was seen as showing media group's need to do more with less.
Fisher and Paykel Healthcare fell 6c to 297, Hallenstein Glasson fell 7c to 361 and Hellaby fell 4c to 183.
A number of top 50 stocks were unchanged today, including Contact Energy, Fisher and Paykel Appliances, Nuplex, NZ Refining and Michael Hill.
Sealegs, which is now a sponsor of the All Blacks, rose a cent to 24.
