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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news