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


MARKET CLOSE: NZ shares join regional sell-off

MARKET CLOSE: NZ shares join regional sell-off as traders mull global rates

By Paul McBeth

July 9 (BusinessDesk) - New Zealand shares fell, joining a sell-off across Asia-Pacific, as investors mull the impact of global monetary policy on long-term bond yields and how that will feed into equity markets.

The NZX 50 Index fell 43.332 points, or 0.8 percent, to 5122.743. Within the index, 26 stocks fell, 15 gained and nine were unchanged. Turnover was $116.9 million.

Stocks across Asia fell, following Wall Street lower, as traders weigh up whether major central banks are moving towards raising interest rates, which would lift yields on bonds and reduce the advantage equities have enjoyed in a zero interest rate environment. Japan's Nikkei 225 index was down 0.3 percent in afternoon trading, Hong Kong's Hang Seng fell 1.3 percent and Australia's S&P/ASX 200 index declined 1.1 percent.

"There's a bit of a feeling across equity markets that we're due for a bit of a pause," said Shane Solly, director, portfolio manager & research analyst at Harbour Asset Management. "People are wondering about the impact of interest rates and monetary policy, and what that means for long-term bond yields."

Property stocks, which are typically seen as offering a strong dividend yield, were mixed, with Goodman Property Trust down 0.9 percent to $1.075, Kiwi Income Property up 0.4 percent to $1.18, DNZ Property Fund unchanged at $1.635, and Property For Industry rising 0.4 percent to $1.34.

Harbour's Solly said the next piece of information investors are waiting for will be earnings season in August, when they will be able to assess their stock valuations.

Accounting software maker Xero led the benchmark index lower, down 3.9 percent to $25. Online auction site Trade Me Group paced the decline, falling 2.5 percent to $3.53 while pay-TV operator Sky Network Television slipped 2.4 percent to $6.59 and governance software developer Diligent Board Member Services decreased 1.9 percent to $4.12.

"Some valuation multiples have jumped up across the market and it's the more high-performing end of the market that's being trimmed back," Solly said.

Mainfreight fell 0.2 percent, or 3 cents, to $14.37 after the logistics group shed the right to its 19 cents per share dividend, payable on July 18.

Chorus fell 0.6 percent to $1.72 after the Commerce Commission put out a paper indicating its early view on what model to use when setting the regulated price for the telecommunications network operator's copper-line service. Telecom Corp, Chorus's biggest customer, slipped 0.6 percent to $2.675.

Fletcher Building, New Zealand's largest listed company, fell 1.6 percent to $8.86.

Warehouse Group rose 0.6 percent to $3.14, Kathmandu Holdings dropped 2.8 percent to $3.13, and Restaurant Brands gained 0.9 percent to $3.28 after government figures showed core retail spending on credit and debit cards slipped in June.

Fisher & Paykel Healthcare, which earns half its revenue in US dollars, fell 0.7 percent to $4.60 after the New Zealand dollar rose to a three-year high against the greenback after Fitch Ratings raised its outlook for New Zealand's sovereign credit rating.

Michael Hill International rose 2.3 percent to $1.33, adding to yesterday's 5.7 percent gain when jewellery chain said annual sales rose at their fastest pace in three years.

Mining company OceanaGold Corp was the biggest gainer on the NZX 50, up 3.2 percent to $3.55.

Energy Mad slumped 24 percent to 19 cents after the energy efficient light bulb maker and marketer yesterday said it had lost tax losses after a long-standing shareholder sold their stake.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news