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

 


MARKET CLOSE NZ stocks follow global decline, led by Xero

MARKET CLOSE NZ stocks drop in global decline, Xero, Trade Me fall

Feb. 4 (BusinessDesk) – New Zealand stocks fell, tracking a global decline, as investors’ fears of faltering economic recovery were exacerbated by poor manufacturing data in the US, and China. Xero led the market lower, with Trade Me Group and Port of Tauranga pacing the decline.

The NZX 50 Index dropped 46.883 points or about 1 percent to 4802.619, its lowest in three weeks. Within the Index 31 stocks fell, four rose and 15 were unchanged. Total turnover for the day was $123.8 million.

Manufacturing data out of the world’s biggest economy, the US, grew at its slowest pace in the past eight months, compounding poor manufacturing, job and export data from the world’s second biggest economy, China. Japan’s Nikkei 225 Index tumbled 3.3 percent in afternoon trading, while Australia’s S&P/ASX 500 and South Korea’s KOPSI both dropped 1.8 percent. Hong Kong’s Hang Seng is closed all week for Chinese New Year, but ended last week down 2.4 percent.

The global response weighed on the local market throughout the day, during morning trade the NZX 50 dropped to a four week intraday low, before regaining ground.

“It’s a sea of red today, although we held out better than most other markets,” said Mark Lister, head of private wealth research at Craigs Investment Partners. “The US got us off to a weak start because of manufacturing data people picked up on that and start to speculate whether there was a soft spot.”

Xero, the cloud-based accounting software company, led the market lower, sinking 4.3 percent to $37.80, its lowest price in three weeks.

“For high volatility stock, like Xero, when the market is in a good mood Xero will perform well,” Lister said. “But the other side of the coin for a stock like Xero is it can get sold off, because it’s higher risk, and more sensitive to the market.”

Online auction site Trade Me Group dropped 2.4 percent to $4.03 and Port of Tauranga fell 2.4 percent to $14.10. Stock market operator NZX declined 2.3 percent to $1.25. Healthcare and animal products maker EBOS Group slid 2.3 percent to $9.48.

“There is some negative sentiment, but there’s not too much more to it than that,” Lister said. “Markets are driven by confidence – when confidence declines you see the market respond.”

Auckland International Airport declined 2.2 percent to $3.55. Casino operator Skycity Entertainment Group slipped 1.3 percent to $3.75, while Telecom was down 0.4 percent to $2.335. New Zealand’s biggest listed company Fletcher Building was unchanged at $8.96.

Guinness Peat Group led the day’s few gainers, up 2.3 percent to 67 cents, a two and a half year high. The investment company is cash rich after a divestment process, but is tied up with an on-going battle with UK pension regulator.

Among other gainers were MightyRiverPower, which rose 0.8 percent to $2, Steel &Tube Holdings gained 1 percent to $3.15 and Auckland-based lines company Vector advanced 0.4 percent to $2.54.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news