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

 


MARKET CLOSE: NZ tech stocks join global sell off

MARKET CLOSE: NZ shares fall, tech stocks join global sell off; Xero, Diligent slip

By Suze Metherell

March 31 (BusinessDesk) – New Zealand stocks fell as the end of financial year saw investors square their books and take profit from tech and growth stocks. Diligent Board Member Services, Xero, Pacific Edge and A2 Corp paced the decline.

The NZX 50 Index fell 2.914 points, or about 0.1 percent, to 5139.982. Within the index, 16 stocks fell, 22 rose and 12 were unchanged. Turnover was $137.5 million.

US tech-dominated Nasdaq Composite sank 2 percent last week as social-media company Facebook lost 11 percent after its purchase of a virtual reality business while Google, the world’s largest search engine, declined ahead of issuing 330 million non-voting C Class shares this week.

Governance app company Diligent led the index lower, dropping 3.5 percent to $4.15. Xero, the cloud-based accounting software company, fell 1.6 percent to near a two-month low of $39.35. Pacific Edge, maker of a non-invasive bladder cancer detection test, declined 2.9 percent to $1.35 and A2 slipped 1.1 percent to 91 cents.

“The market is a little weak and overall that weakness is being led by the tech stocks,” said James Lee, head of institutional equities at First NZ Capital. “What you have seen is global tech companies have been under a bit of pressure recently. As a sector they’ve all done very, very well, and now it is a bit of profit taking.”

Tech stocks outside the benchmark index also fell. Security software firm Wynyard Group slipped 1.4 percent to $2.93. GeoOp, whose software allows small businesses to manage their workforce, declined 4 percent to $1.90.

“It is important to note it’s our financial year end today in New Zealand,” said Lee. “People will want to tidy stuff up so you get some random movements on that last day of the year, as people want to balance the cash that they need for their clients.”

Auckland International Airport fell 1.6 percent to $3.81. The nation’s busiest gateway detailed its 30 year, $2.5 billion plan over the weekend, which includes building a second runway and merging the domestic and international terminals.

“It’s a very bold statement to make, but it’s beyond most people’s investment time horizon to be honest,” Lee said.

Fletcher Building, New Zealand’s largest listed company, fell 1.1 percent to $9.52. Government data showed residential building consents fell 1.7 percent, the second monthly decline, led by apartments.

Power stocks were mixed ahead of the government’s listing of 49 percent of Genesis Energy on April 17. Meridian Energy fell 0.9 percent to $1.16, Contact Energy declined 0.2 percent to $5.32. MightyRiverPower was unchanged at $2.1, as was Auckland lines company Vector at $2.43.

Telecom fell 0.2 percent to $2.44. Sky Network Television slipped 0.8 percent to $6.25. Port of Tauranga was unchanged at $14.20.

Outdoor goods retailer Kathmandu Holdings was the best performer on the NZX 50, rising 4.1 percent to $3.85. Air New Zealand climbed to pre-global financial crisis highs, up 2.3 percent to $2.045. Steel & Tube advanced 3.4 percent to $3.05.

Outside the NZX 50, Wellington Drive climbed 23.1 percent to 16 cents. The Auckland-based energy efficient motor maker signed a channel partnership for the North-American market with US-based East West Manufacturing.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news