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

 


MARKET CLOSE: NZ shares decline as sentiment wanes

MARKET CLOSE: NZ shares decline as sentiment wanes in quiet market

By Tina Morrison

July 11 (BusinessDesk) - New Zealand shares declined, tracking US and European equities lower as sentiment waned on concern about the euro-zone's financial stability after a major Portuguese bank missed debt payments.

The NZX 50 Index slid 27.421 points, or 0.535 percent, to 5,100.592. Within the index, 30 stocks fell, nine rose, and 11 were unchanged. Turnover was $81.3 million.

In northern hemisphere trading overnight, shares of Portugal’s Banco Espirito Santo plummeted 17 percent amid concern about missed debt payments by its parent Espírito Santo International before trading in the stock was halted. Investors are concerned about the potential contagion to other economies in the region, and Greece was forced to scale back its plans for its second debt sale following its 2012 default. In New Zealand, the local market failed to recover from initial weaker sentiment in quiet trading during the nation's school holiday period.

"This morning we had a fall off in the European markets given the Portuguese bank that ran into trouble, and that spilled into the Dow, so certainly the sentiment was weak," said Bryon Burke, head of equities at Craigs Investment Partners. "There is a lack of investors, given it is the middle of the school holidays, and sentiment started off the day weak, so there hasn't been enough interest to drive our market back up off its lows."

Cloud accounting software firm Xero led the benchmark lower, down 3.5 percent to $24.75. Just 51,000 of the company's shares were traded, compared with an average daily volume of around 200,000, Burke said.

Pacific Edge, the bladder cancer test developer, fell 2.5 percent to 77 cents, while casino company SkyCity Entertainment Group dropped 2.4 percent to $3.72 and national carrier Air New Zealand declined 2.2 percent to $2.025.

Meanwhile, Telecom Corp, the nation's largest telecommunications company, gained 0.9 percent to $2.715, outdoor clothing and equipment retailer Kathmandu Holdings increased 1.6 percent to $3.24 and Warehouse Group, the nation's largest discount retailer, added 0.3 percent to $3.10.

Demand for the New Zealand dollar, which has pushed the local currency close to its 88.40 US cent post-float record, may see funds start to flow into local equities, Burke said.

"Overseas investors are finding the New Zealand dollar attractive and a lot of that money will be going into fixed interest but some of it will see its way through to equities and that should add support to our market," he said. "Overall sentiment is pretty positive for the New Zealand economy and New Zealand companies so I can't see our market drifting off too much. I imagine we will see strength return to the market maybe next week."

Units in the Fonterra Shareholders' Fund, which give investors exposure to the group's dividends, were unchanged at $5.80 after the world's largest dairy exporter said it plans to build a third farm hub in China in a US$300 million joint venture with New York Stock Exchange-listed Abbott Laboratories, in its latest attempt to latch on to growth in the world's second biggest economy.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

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:

Get More From Scoop

 
 
Standards New Zealand

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