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

 


MARKET CLOSE: NZ shares join global stocks lower, led by PEB

MARKET CLOSE: NZ shares join global stocks lower led by Pacific Edge, Xero

By Suze Metherell

April 11 (BusinessDesk) – New Zealand stocks joined a global sell-off amid concerns high-growth companies may struggle to convert sales into profits, led lower by biotech firm Pacific Edge and software developer Xero.

The NZX 50 Index fell 24.058 points, or 0.5 percent, to 5091.431. Within the index, 28 stocks fell, 11 rose and 11 were unchanged. Turnover was $101.8 million.

Stocks across Asia followed Wall Street lower, with Japan’s Nikkei 225 index down 2.5 percent in afternoon trading, Australia’s S&P/ASX 200 falling 0.9 percent and Hong Kong’s Hang Seng down 0.8 percent. The sell-off followed the biggest daily decline on the tech-heavy Nasdaq Composite Index since November 2011. In the past month global investors have been selling stocks in growth-orientated tech firms, preferring stocks with higher yields instead.

Pacific Edge was the biggest decliner on the local market, falling 9.8 percent to $1.10. The Dunedin-based bladder cancer text developer had an intraday decline of 15 percent to $1.04, the lowest since Oct. 23, and has dropped 25 percent in the past month.

Xero, the cloud-based accounting software maker, fell 5.3 percent to $31.35, while milk marketer A2 Milk slipped 3.5 percent to 84 cents.

“Dragging the index lower today are Pacific Edge, Xero, A2 Milk – so all the companies that don’t make any money,” said Bryon Burke, head of equities at Craigs Investment Partners. “Stocks that have moved higher today are high yield stocks, so New Zealand is reflecting what’s happening in the rest of the world.”

Outside the benchmark index tech stocks slid. Wynyard Group, the security software firm, declined 5.6 percent to $2.36, SLI Systems, the search engine developer, fell 7.3 percent to $1.90 and GeoOp, which makes small business task management apps, dropped 10 percent to $1.35.

Vital Healthcare Property Trust, which has a gross dividend yield of 6.4 percent, was the biggest gainer on the NZX50, up 0.8 percent to $1.295. Telecom, which has a gross dividend yield of 6.2 percent rose 0.4 percent to $2.61.

Fletcher Building, New Zealand’s largest listed company, rose 0.6 percent to $9.70. Sky Network Television advanced 0.5 percent to $6.48.

Today was the last day investors could buy Genesis Energy shares before the government lists 49 percent of the state-owned energy provider and retailer on April 17. MightyRiverPower rose 0.2 percent to $2.16, Meridian Energy advanced 0.4 percent to $1.15 and Contact Energy slipped 0.4 percent to $5.31.

Shares in Chorus fell 2 percent to $1.73 after it sought leave to appeal a High Court judgment upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. The company also suspended its dividend reinvestment plan today.

Auckland International Airport fell 0.3 percent to $3.92. Air New Zealand, the national carrier, declined 1 percent to $2.06. Casino operator SkyCity Entertainment Group slipped 0.3 percent to $3.96.

(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