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

 


MARKET CLOSE: NZ shares fall in tech tumble led by Xero

MARKET CLOSE: NZ shares fall in tech driven tumble, Xero plunges

By Suze Metherell

April 8 (BusinessDesk) – New Zealand stocks fell for a second day, following Wall Street lower as a global tech sell off continued. Xero led the benchmark index lower, while Diligent Board Member Services, Wynyard Group, SLI Systems and GeoOp all fell.

The NZX 50 Index declined 44.284 points, or about 0.9 percent, to 5031.56. Within the index, 29 stocks fell, 10 rose and 11 were unchanged. Turnover was $126.9 million.

On Wall Street, the tech-heavy Nasdaq Composite fell for a third day as investors reduced exposure to companies such as Google, Apple and Yahoo. Local tech and growth stocks which had made gains at the start of the year fell as investors questioned whether their sales growth could deliver profits.

Xero plunged 12 percent to $31.50. The Wellington-based software company surged over 200 percent last year but has declined 30 percent in the past month to see Telecom overtake it by market cap at $4.6 billion compared to Xero’s $4 billion. Telecom fell 0.2 percent to $2.52.

Diligent, the governance app maker, fell 1.2 percent to $4.25. Tech stocks outside the benchmark index also fell. Wynyard, the security software firm, fell 7.6 percent to $2.45. SLI Systems, the online retail search engine designer, slid 3.9 percent to $1.95 and GeoOp, the small business task manager app, dropped 13 percent to $1.39.

“The main stocks to get sold off here are in the IT sector, which is very similar to what happened in the States last night but the real big mover has been Xero which has come under some pretty aggressive selling for a number of days now,” said Grant Williamson, director at Hamilton Hindin Greene. “There was certainly a little bit too much hype in those stocks and everybody wanted to jump on board.”

Pacific Edge, the bio-tech company which surged 109 percent in the past year, dropped 5.4 percent to $1.22. A2 Corp, the milk marketer which has gained 47 percent in the past 12 months, fell 1.2 percent to 84 cents. Ryman Healthcare, which rose 63 percent in the past year, slipped 0.7 percent to $8.33.

“Good news has really pushed those share prices above where they should have gone, probably driven by a little bit of investor hype,” Williamson said.

Chorus fell 1.4 percent to $1.765. The telecommunications network provider lost its appeal to the High Court over the Commerce Commission’s decision to slash pricing for access to its copper lines.

Steel & Tube rose 1 percent to $2.99. The steel manufacturer plans to buy the local division of India's Tata Steel Group for $27.5 million.

“That’s quite a reasonable sized purchase for Steel & Tube and it’s good to see them active on the acquisition trail to grow their overall business,” Williamson said.

Units in Fonterra Shareholders’ Fund fell 0.3 percent, or 2 cents, to $6.18 as it shed rights to its 5 cents per share interim dividend. The units give investors access to Fonterra Cooperative’s dividend stream.

Fletcher Building rose 0.4 percent to $9.48.

OceanaGold was the best performer rising 4.5 percent to $2.80.

Outside the NZX 50, retailer Postie Plus Group was unchanged at 9.5 cents after it met an extended deadline to post its first-half results, reporting a wider loss on supply chain disruptions and tough trading conditions for clothing retailers.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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