MARKET CLOSE: NZ shares down on Asia-wide losses

MARKET CLOSE: NZ shares down on Asia-wide losses amid trade nerves, Fisher & Paykel, Synlait fall

By Sophie Boot

July 16 (BusinessDesk) - New Zealand shares fell in a region-wide selloff as trade war fears rose, with Fisher & Paykel Healthcare Corp and Synlait Milk dropping.

The S&P/NZX50 Index dropped 43.88 points, or 0.5 percent, to 8,980.31. Within the index, 23 stocks fell, 17 rose and 10 were unchanged. Turnover was $67 million.

The local benchmark index followed most indices around Asia lower, with the ASX 200 down 0.5 percent at 5:10pm local time, alongside Hong Kong's Hang Seng down 0.2 percent and China's CSI 300 down 0.5 percent.

"It's really led by further fear of a trade war between Trump and China, it's just an overarching element of nervousness in markets at the moment as we head into what should be a pretty good reporting season, particularly in the US, and locally here," said Rickey Ward, NZ equity manager at JBWere. "It gives you the impression there's these other elements lurking in the background that are creating a level of uncertainty, and markets are reflecting that, where people are unwilling to do an awful lot."

Fisher & Paykel led the index lower, down 1.8 percent to $14.53, with Synlait Milk falling 1.7 percent to $11.06, Investore Property dropping 1.3 percent to $1.49, and Metlifecare down 1.3 percent to $6.10.

Kathmandu Holdings was the best performer, rising 3.3 percent to $3.16. Skellerup Holdings gained 1 percent to $1.99 and Trade Me Group advanced 0.8 percent to $4.86.

Fletcher Building rose 0.6 percent to $7.05. The company has picked up KiwiRail chief executive Peter Reidy to head its construction division, which oversees the problematic Buildings + Interiors unit. Fletcher is restructuring its businesses under new CEO Ross Taylor, which includes getting the construction unit on an even footing after it took on a number of unprofitable projects in its B+I business.

Outside the benchmark index, Delegat Group rose 1.2 percent to $8.75. New Zealand’s largest listed winemaker said its operating net profit in the year to June lifted 17 percent to a record $44.9 million, underpinned by record global case sales, lower cost of sales per case, higher yielding 2016 and 2017 vintages and lower financing costs.

(BusinessDesk)

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