NZX CLOSE: Shares fall with global slide; Hallenstein, FPA drop

Wednesday 2nd September 2009

New Zealand shares fell, joining a global slide after fears about U.S. bank earnings weighed on Wall Street. Clothing chain Hallenstein Glasson Holdings and Fisher & Paykel Appliances led the decline.

The NZX 50 Index fell 10.03, or 0.3%, to 3074.64, the third daily decline. Within the index, 31 stocks fell, eight rose and 10 were unchanged. Turnover was $77.9 million.

Equity markets tumbled across Asia after the S&P 500 dropped 2.2% yesterday. Japan’s Nikkei 225 Index was down 2.5% in early afternoon trading and in Australia, which today reported stronger-than-expected economic growth, the S&P/ASX 200 slipped 1.8%.

Hallenstein Glassons (NZX: HLG ) fell 5.6% to $2.70, having advanced 34% in the past six months. F&P Appliances (NZX: FPA ), the appliance manufacturer, fell 5% to 74 cents and jeweller Michael Hill International (NZX: MHI ) declined 4% to 69 cents.

Freightways Ltd (NZX: FRE ), the country’s largest listed courier company, fell 2% to $2.91 after Australia’s Toll Holdings announced its entry into the New Zealand express parcel market with a fleet of 55 small trucks and vans. Separately today, Freightways said it won the contract to deliver parcels for Australian Post.

NZ Farming Systems Uruguay(NZX: NZS ), which is developing dairy farms in South America, surged 12% to 46 cents after Singapore’s Olam International acquired 14% for 41 cents apiece, taking advantage of a share price that’s sunk from $1.60 a year ago.

Helping underpin the shares, prices of milk powder jumped more than 24% in Fonterra Cooperative Group's latest online auction, the second monthly surge, fueling optimism global prices are reviving.

PGG Wrightson (NZX: PGW ), the nation’s biggest rural services company, fell 4% to 70 cents and Pyne Gould Corp., which owns a stake in Wrightson, fell 5% to $1.29 as investors await details of the two companies’ capital raising plans. They both posted losses this month.

Rural Portfolio Investments, the investment vehicle of Baird McConnon and Craig Norgate and the biggest shareholder of Wrightson this week said it may be forced to increase borrowing or sell assets.

Fletcher Building (NZX: FBU ), the nation’s biggest construction company, fell 2.1% to $7.58 and foodmaker Goodman Fielder (NZX: GFF ) slipped 3.5% to $1.93.

Among gainers, Sky City Entertainment (NZX: SKC ) gained 3% to $3.31 and Sky Network Television (NZX: SKT ) gained 1.6% to $4.50.

Businesswire.co.nz

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