MARKET CLOSE: NZX 50 falls, first time in 5 days

MARKET CLOSE: NZX 50 falls, first time in 5 days; Fletcher, Telecom drop

Dec. 4 (BusinessWire) – New Zealand shares fell, sending the NZX 50 lower for the first time in five days, paced by Fletcher Building and Telecom Corp., after a second IPO got pulled and data showed company tax payments are below forecast.

The NZX 50 fell 7.473, or 0.2%, to 3146.457. Within the index, 22 stocks rose, 15 fell and 11 were unchanged. Turnover was $104.3 million.

The Treasury released figures today showing companies paid more than $1 billion less than forecast tax in the four months through October, underpinning the impact of dwindling corporate profits.

Meantime, DNZ Property Fund put off plans to tap investors for as much as $140 million via an initial public offering. It cited public misconceptions about the nature of the transactions, which would see the manager brought inhouse.

DNZ follows Synlait, the South Canterbury milk processor who abandoned an attempt to go public.

Fletcher, the nation’s biggest construction company, fell 0.8% to $7.81. Telecom Corp., the biggest phone company, declined 2.4% to $2.41.

Among gainers, ING Property Trust advanced 5.3% to 79 cents, while Kiwi Property Trust gained 4% to $1.04, marking a stronger day for property investors. AMP NZ Office Trust climbed 4% to 78 cents.

New Zealand Oil & Gas climbed 1.2% to $1.72 after Kupe field operator Origin Energy said the first gas had been taken from the field for processing at Hawera. NZOG has 15% of the field.

Foodmaker Goodman Fielder led decliners, falling 3.3% to $2.03. Jeweller Michael Hill International fell 3.1% to 63 cents.

Heritage Gold NZ Ltd. surged 18% to 4.6 cents after announcing it had been granted a 25-year permit to extract gold and silver from the site of the old Talisman mine near Paeroa. The company is in talks with potential Chinese investors about the project.

Ryman Healthcare gained 2% to $2.08, Skellerup rose 2% to 50 cents and Pumpkin Patch climbed 1.6% to $1.93.

(BusinessWire)

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