MARKET CLOSE: NZ shares fall, led by Spark

MARKET CLOSE: NZ shares fall with profit taking on Spark, Freightways, SkyCity

By Sophie Boot

Dec. 2 (BusinessDesk) - New Zealand shares fell as some investors looked to crystallise gains after the benchmark index hit a record high yesterday. Spark New Zealand, Freightways and SkyCity Entertainment Group were among the biggest decliners.

The S&P/NZX 50 Index slipped 7.36 points, or 0.12 percent, to 6143.32. Within the index, 23 shares rose, 19 fell and 5 were unchanged. Turnover was $136 million.

Spark led the market lower, falling 2.7 percent to $3.31. The stock had risen 6.4 percent since Nov. 17 before today's fall, and has gained 9.2 percent this year.

Freightways dropped 1.8 percent to $6.15, having climbed 4 percent to a six-month high of $6.26 prior to today. SkyCity fell 1.6 percent to $4.30, having gained 4.3 percent since last Friday.

"Those are a couple of stocks which have been quite strong, and look like they've just come off their highs," said Grant Williamson, director at Hamilton Hindin Greene.

Ebos Group rose 0.3 percent to $14.70, a record high, having gained 49 percent this year.

"There doesn't seem to be anything stopping that share price at the moment," Williamson said, describing the company as "the darling of the market".

The shares have risen 7.5 percent since the animal and healthcare products company bought New Zealand vitamin and herbal tea maker Red Seal for $80 million in mid-November. Ebos is also listed on the ASX, and the dual-listed stock had reaped the benefits of the strong healthcare sector.

Trade Me Group rose 3.1 percent to $3.99, a 12-month high and a recovery from the 3 1/2-year low of $3.04 reached in August.

"It certainly has firmed up over the last two days," Williamson said. "It's really only getting back to where it was a few weeks ago."

Fonterra Shareholders' Fund rose 1.5 percent to $5.59, a two-month high. Most forecasts for Fonterra Cooperative Group's payout to New Zealand farmers this season remain below the company's estimate even after prices advanced at the GlobalDairyTrade auction overnight, suggesting analysts expect a cut to its forecast.

Fletcher Building rose 0.8 percent to $7.34. The Earthquake Commission today said that the Fletcher Building-managed home repair programme in Christchurch has delivered value for money in a project with no international comparisons, with work done cheaper than the cost of building new houses.

Metlifecare rose 0.2 percent to $4.30 after it was announced that the head of Housing New Zealand, Glenn Sowry, was quitting to become chief executive of the retirement village operator that counts the New Zealand Superannuation Fund and Infratil as cornerstone shareholders

Smartpay was unchanged at 15 cents after chairman Ivan Hammerschlag stood down effectively immediately yesterday, replaced by board member Greg Barclay.

(BusinessDesk)

© Scoop Media