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

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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