MARKET CLOSE: NZ shares down in subdued market; Investore falls, Sky TV, Metro Glass gain

Monday 12th June 2017

New Zealand shares dipped in a quiet market without Australian investors, as Investore Property fell while Sky Network Television and Metro Performance Glass rose.

The S&P/NZX 50 Index fell 3.36 points, or 0.045 percent, to 7,432.74. Within the index, 22 stocks fell, 18 rose and ten were unchanged. Turnover was $67 million.

"It's a bit of a dull old day, with the Australian market closed for their Queen's Birthday public holiday, the institutional investors are not involved so we haven't seen much activity here," said Grant Williamson, director at Hamilton Hindin Greene.

The surprise result of the UK general election last Friday, which saw the Theresa May-led Conservative party lose its majority and a hung parliament, hasn't unsettled markets too much at this stage, Williamson said, though things could change as the week progresses. May is now attempting to negotiate a coalition with the Northern Irish Democratic Unionist Party, ahead of Brexit negotiations with the EU due to begin this month.

"There can be a bit of a delayed reaction to these kinds of results, it's not going to be an easy job negotiating Brexit, so we will see how the market takes it over the next few days," Williamson said. "Today just highlights how important the Australian market is to us."

Sky Network Television was the best performer, up 2.9 percent to $3.50.

"There's been some bargain hunting today, it had a rough week last week down 6.3 percent but it has regained half of that today," Williamson said. "Investors are pretty concerned with Sky TV and where it goes post rejection of the Vodafone merger."

Metro Performance Glass rose 1.5 percent to $1.34 and A2 Milk Co advanced 1.5 percent to $3.44.

Investore was the worst performer, down 1.5 percent to $1.34, while Fletcher Building dropped 1.4 percent to $7.55 and Air New Zealand declined 1.2 percent to $2.965.

Meridian Energy was unchanged at $2.87. New Zealand's largest hydro electricity generator issued its monthly operating report for May today. In the month, national electricity demand was 5.1 percent higher than the same month last year, while national hydro storage decreased to 74 percent from 90 percent of the historical average

(BusinessDesk)

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