MARKET CLOSE: NZ stocks fall for eighth session; WBC drops

MARKET CLOSE: NZ stocks fall for eighth session; Westpac leads decliners, Skellerup rises

By Jason Krupp

July 14 (BusinessDesk) - New Zealand stocks fell for an eighth session, with Westpac Banking Corp. leading the exchange lower after a surge in the kiwi dollar sapped offshore demand for shares. Skellerup Ltd. rose.

The NZX 50 Index fell 14.79 points, or 0.4%, to 3,409.55, the lowest level since March 28. Within the index, 23 stocks fell, 19 rose, and eight were unchanged. Turnover was $145.5 million.

The New Zealand dollar today broke above 85 U.S. cents for the first time
since it was floated 26 years ago before paring back to its current level of 84.82 cents after government data showed the economy grew at twice the forecast pace in the first three months of this year.

Gross domestic product grew 0.8% in the three months ended March 31, according to Statistics New Zealand, beating a Reuters survey of economists, which was picking 0.4% growth.

"The currency really dented the appeal of dual-listed stocks, and that's where a lot of the hurt has come from today," said David Price, a broker at Forsyth Barr.

Westpac, the Australian lender, fell 3.7% to a one year low of $26.40. AMP Ltd., the wealth manager which recently acquired the New Zealand and Australian assets of Axa Asia Pacific Holdings, fell 3.5% to $5.85.

Telstra Corp., the Australian phone company, fell 2.3% to $3.79. Australia & New Zealand Banking Group, the country's biggest lender, fell 2.2%to $26.65.

Heartland New Zealand Ltd., the would-be bank formed by the merger of Marac and the Canterbury and Southern Cross building societies, fell 3% to 64 cents.

That's an all-time low for the stock which listed on the NZX in February at 86 cents a share.

Retail stocks fell after the latest data showed shoppers kept a tight grip on their purses in July, with spending caution outstripping the urge to splurge seen in the previous month. The ANZ-Roy Morgan Consumer Confidence survey fell 3.1 points to 109.4 in July.

Kathmandu Holdings, the outdoor clothing and equipment retailer, fell 3.1% to $2.21. Pumpkin Patch Ltd., the children's clothing chain, fell 2.7% to $1.07.
Restaurant Brands NZ Ltd., the fast food franchise operator, fell 2% to $2.43.

Argosy Property Trust, the listed property investor, 1.2% to 82 cents as the stoush over how the trust's management will be brought in-house looks set to go to court.

Rival DNZ Property Fund Ltd. said it has filed papers in the High Court in Auckland after Argosy’s manager failed to call a special meeting of unitholders.

DNZ joined fellow Argosy investors the Accident Compensation Corp., New Zealand Superannuation Fund and Westpac Banking Corp. who banded together to force a meeting where they planned to dump the OnePath NZ Ltd.-owned manager.
DNZ shares were unchanged at $1.30.

That battle is likely to spill over to sister fund Vital Healthcare Property Trust, where a group made up of many of the same investors demanded OnePath call a similar meeting.

The group, which collectively holds 15% of VHP's units, is made up of Accident Compensation Corporation, the Guardians of New Zealand Superannuation and Westpac and its subsidiary BT Funds Management.

Skellerup Holdings, the rubber goods and milking equipment manufacturer, rose 2.5 percent to $1.21, leading gainers on the exchange after the June
Performance of Manufacturing Index showed manufacturers were so far avoiding the worst impacts of a high kiwi dollar and the European debt crisis.

The Index was led by the expansion of new orders and deliveries. However, conditions were mixed, with inventories tightly controlled, employment falling, and the overall level of activity - at 54.3 - slightly down on May’s score of 54.7.

Property For Industry Ltd., the commercial and industrial property investor, rose 1.6% to 62 cents.

Ryman Healthcare, the retirement village operator, rose 1.5% to $2.69, with the stock recovering some of the ground it lost yesterday when Tainui Group Holdings sold its 4.5% stake in the company for $58 million to fund it property investments.

New Zealand Refining Co., the operator of the nation's only oil refinery, rose 1.4% to $3.60. Methven Ltd., the tapware manufacturer, rose 1.4% to $1.49.

Tower Ltd., the general insurer, rose 1.4% to $1.49.

(BusinessDesk)

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