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

 


MARKET CLOSE: NZ shares fall, led by Pacific Edge

MARKET CLOSE: NZ shares fall from record, led by Pacific Edge

By Suze Metherell

May 5 (BusinessDesk) – New Zealand shares fell from a record as investors cashed in recent gains in growth and energy stocks. Pacific Edge led the benchmark index lower, with Xero and a2 Milk Co pacing the decline.

The NZX 50 Index fell 32.658 points, or 0.6 percent, to 5200.253. Within the index, 26 stocks fell, 11 rose and 13 were unchanged. Turnover was $178 million.

The benchmark index closed at a record last week as markets bounced back from a global sell-off in biotech and computing stocks, which underpinned gains in local firms including Pacific Edge, Xero and a2 Milk. Investors locked in some of those gains, with Pacific Edge falling 3.6 percent to $1.08. Xero fell 1.9 percent to $31.35 and a2 Milk declined 1.3 percent to 79 cents.

“Investors were willing to pay up for growth and then it just reached a point where it got a bit out of hand and there is always the correction,” said James Smalley, director at Hamilton Hindin Greene. “People are looking for a bit of an excuse to take a bit out of the market – investors are a little bit more bird in the hand than two in the bush in regards to earnings.”

Energy stocks fell after gains over the past month. Contact Energy dropped 2.4 percent to $5.66, Meridian Energy slipped 2 percent to $1.20, and MightyRiverPower dropped 1.1 percent to $2.31. Outside the benchmark index, Genesis Energy declined 0.5 percent to $1.85.

“It’s not just in the growth companies coming in for selling, but also some of these larger cap companies that were maybe trading on multiples a little bit on the high side,” Smalley said. “With the absence of any specific corporate news investors are happy to take a bit of profit off the top.”

Fletcher Building, New Zealand’s largest listed company, fell 0.1 percent to $6.05. Telecom, the nation’s biggest telecommunications provider, dropped 0.7 percent to $2.665 while Air New Zealand declined 1.4 percent to $2.10. Ryman Healthcare, the retirement village operator, slid 2.1 percent to $8.70.

OceanaGold led gainers, up 4.3 percent to $2.92. Precinct Properties rose 1.4 percent to $1.06. Outdoor goods retailer Kathmandu Holdings climbed 0.8 percent to $3.66.

Stock market operator NZX climbed 0.8 percent to $1.26 after it said New Zealand share trading rose for the 20th consecutive month in April.

Outside the benchmark index, Sanford rose 0.7 percent to $4.29. The fishing company agreed to buy the assets of GreenShell NZ Limited and Greenshell Investments from the receivers of the mussel farming and processing group.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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