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

 

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news