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

 


MARKET CLOSE: NZ stocks drop on global uncertainty

MARKET CLOSE: NZ stocks drop on global uncertainty; Telecom, Sky TV fall

By Suze Metherill

Jun. 18 (BusinessDesk) - New Zealand stocks fell, led by Telecom Corp after Sky Network Television announced plans to challenge the phone company in the pay-per-view television market. Rising tensions in Iraq and the outcome of the US Federal Reserves two day policy meeting eroded risk sentiment.

The NZX 50 Index fell 9.038 points, or 0.2 percent, to 5184.462. Within the index, 20 stocks fell, 21 rose and nine were unchanged. Turnover was $133 million.

Telecom fell 1.6 percent to $2.705 after Sky Network Television said it will launch a subscription video on demand service by the end of the year in a challenge to Telecom's own offering as well as ASX-listed Quickflix, Ezyflix and eventually US-based Netflix, which pioneered such offerings and will reportedly enter the local market officially in 2015. New Zealand's largest telecommunications provider is in a time of transformation, changing its name to Spark in August and chasing earnings growth in a shift away from its traditional bread and butter telecommunications service to focus on data, mobility and cloud services. It is soft-launching an internet TV service this month.

Sky Network rose 0.2 percent to $6.79.

"Everyone sort of knows that all these media and telco companies are looking to get involved in that space," said Mark Lister, head of private wealth research at Craigs Investment Partners. "Telecom is also often seen as a proxy for the New Zealand market, and if the New Zealand market is down, Telecom often is too."

Across the Asia-Pacific region markets were weaker as investors mulled escalating violence in Iraq and waited on the next monetary policy step from the US, which produced data yesterday that surprised the market, with inflation accelerating more than expected, raising the prospect of US starting to raise interest rates later this year. South Korea's Kopsi 200 Index dropped 0.7 percent in afternoon trade, Australia's S&P/ASX 200 fell 0.2 percent and Hong Kong's Hang Seng Index edged down 0.1 percent.

"People are waiting for the Federal Reserve announcement tomorrow morning," Lister said. Risk aversion crept into the market, as "people are certainly watching what is happening in Iraq and if you start to see any signs of escalation then you would see markets get even more cautious."

Skellerup Holdings advanced 1.1 percent to $1.22 after the rubber goods and dairy equipment manufacturer said it will build a $30 million factory at the Wigram Business Park in Christchurch developed by Ngai Tahu Property, to replace its earthquake-damaged facility in the suburb of Woolston.

Heartland New Zealand was the best performer on the day, up 2.2 percent to 94 cents. Yesterday the bank said it had sold 51 percent of its non-core assets, from $87.1 million to $43 million over the past five months. It had previously forecast reducing non-core property to $57.9 million by June 30.

Fletcher Building, New Zealand's largest listed company, rose 0.5 percent to $9.00. Auckland International Airport fell 1.2 percent to $3.79. Ryman Healthcare slipped 0.4 percent to $8.45.

Outside the benchmark index, Bathurst Resources jumped 10 percent to 5.5 cents after the miner said it will begin site works and extracting coal from a much reduced area of its consented Escarpment mine on the Denniston Plateau, above the South Island west coast town of Westport, following the extension of its $22 million, five-year commitment to payments for the Department of Conservation to seven years.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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