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

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news