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

 


MARKET CLOSE: NZ shares fall on China data

MARKET CLOSE: NZ shares fall on China data; Fletcher, Xero decline

By Suze Metherell

March 14 (BusinessDesk) – New Zealand stocks fell, joining a global sell off amid concern about a slowdown in China, Asia’s largest economy, after weaker than expected retail sales data. Xero and Fletcher Building paced the decline.

The NZX 50 Index fell 32.66 points, or 0.6 percent, to 5079.324. Within the index, 26 stocks fell, 14 rose and 10 were unchanged. Turnover was $108 million.

Markets across Asia declined after reports showed Chinese retail sales grew at the lowest rate in January and February since 2004, and in the same period factory output increased at its slowest pace since the global financial crisis. In the past two weeks Chinese company bond defaults and an 18 percent drop in Chinese exports have spooked investors in what is already deemed an “over-priced” equity market.

“I wouldn’t say the markets are cheap by any stretch of the imagination - in fact some of them are stretching the band in terms of valuation,” said David Price, a broker with Forsyth Barr. “We’re getting into overvalued territory, and if it’s looking for an excuse for profit taking it will take it, and that’s what happened.”

Xero, the software company which gained 291 percent in the past year, dropped 2.4 percent to $41.94. Diligent Board Member Services, the governance app company, declined 0.2 percent to $4.60. Fletcher, New Zealand’s largest listed company, fell 1.5 percent to $9.58. Tower Insurance was the benchmark index’s worst performer, sliding 2.5 percent to $1.58.

Investors sold off energy stocks as they made room in their portfolios for Genesis Energy, the last asset to be sold in the government’s partial privatisation scheme, which has “a very big yield”, said Price.

Government-controlled MightyRiverPower slipped 0.5 percent to $2.025. Meridian Energy declined 0.5 percent to$1.08. Contact Energy sank 1.7 percent to $5.22.

Retails stocks also declined. Warehouse Group, New Zealand’s largest listed retailer, fell 0.3 percent to $3.22. Outdoor goods retailer Kathmandu Holdings dropped 2.2 percent to $3.52. Online auction site Trade Me Group declined 1.3 percent to $3.67. Clothing chain Hallenstein Glasson, which has been the benchmark index’s worst performer this year, rose 1.6 percent to $3.14.

Chorus, the telecommunications network operator and builder, rose 1.5 percent to $1.675. The company’s stock has declined 43 percent in the past 52 weeks amid concern about the impact of regulated price cuts on its copper network.

Auckland International Airport was unchanged at $3.90 as was SkyCity Entertainment Group at $3.94. Air New Zealand dropped 1.1 percent to $1.86. Sky Network Television declined 1.1 percent to $6.28. Telecom was unchanged at $2.45.

Outside the index, security analytics software company Wynyard Group rose 4.6 percent to $2.99. The Auckland-based company raised $30 million in a placement to drive growth plans and will seek a further $5 million in a share purchase plan from existing investors.

(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