Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


MARKET CLOSE: NZ shares join global selloff; Xero falls

MARKET CLOSE: NZ shares join global selloff; Xero, Chorus and SkyCity drop

By Suze Metherell

Jan. 3 (BusinessDesk) – New Zealand stocks fell today, joining a global sell-off as disappointing Chinese manufacturing data stoked concerns the global economic recovery may falter. Xero, Chorus and SkyCity Entertainment Group led the decline.

The NZX 50 Index fell 25.081 points, or 0.5 percent to 4849.502. Within the index, 23 stocks fell, 19 rose and eight were unchanged. Total turnover for the day was $77.9 million.

Across the region, the Lunar New Year saw the Chinese, Hong Kong and Taiwanese markets closed. Those markets that were open were spooked by Chinese figures showing jobs and export orders shrinking. Japan’s Nikkei 225 Index was down about 1.4 percent, Australia’s S&P/ASX 200 slipped about 0.2 percent and South Korea’s Kospi 200 Index slid about 1 percent.

“As strong as the New Zealand market has been we can’t shrug off the Asian markets, we can’t outperform them,” Bryon Burke, head of equities at Craigs Investment Partners said.

Wellington-based cloud accounting software company Xero led the index lower, down 4.8 percent to $39.51, its lowest in three weeks. Telecommunications network operator Chorus fell 2.9 percent to $1.36, while casino and hotel group SkyCity declined 1.8 percent to $3.80.

New Zealand’s biggest listed company Fletcher Building fell 1.3 percent to $8.96. Telecom was down 0.2 percent to $2.345 and Auckland International Airport dropped 0.5 percent to $3.63. Sky Network Television slipped 0.2 percent to $5.77.

NZX, the stock market operator, was the Index’s biggest gainer, lifting 1.6 percent to $1.28. The company announced US investors are now able to buy dairy futures directly, a signal of more growth in its dairy derivatives market.

Brisbane-based jeweller Michael Hill International rose 1.5 percent to $1.38 and partially-privatised energy company MightyRiverPower, up 1.5 percent to $1.985. Meridian Energy was up 0.5 percent to $1.01.

The market entered February slightly off the boil and on relatively thin volume, making more stable, higher yield stocks, such as the property sector look attractive to investors.

“To a certain degree property stocks have been under-performing a bit, people have focused on growth stocks,” Burke said. “In times when the market is coming off, the yield stocks are seen as a safer way to invest, growth stocks are volatile, sentimental driven stocks.”

Kiwi Income Property led the real estate rally, rising 1.4 percent to $1.12. Property for Industry gained 0.4 percent to $1.27, while Precinct Properties New Zealand also lifted 1 percent to 99.5 cents. DNZ Property Fund was up 0.7 percent to $1.53, joined by Argosy Property up 0.6 percent to 91.5 cents.

Outside of the benchmark index, growth stocks were also depressed. Security software makers Wynyard Group was down 4.3 percent to $2.68. Retail search engine firm SLI Systems slipped 3.7 percent to $2.59, while task-managing app company GeoOp declined 2.9 percent to $2.67.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news