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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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