Tuesday 16th June 2015 |
Text too small? |
New Zealand shares fell in a Asia-Pacific region-wide sell off, as offshore uncertainty spooked investors. Steel & Tube Holdings, Auckland International Airport and Fletcher Building fell.
The NZX 50 Index fell 6.035 points, or 0.1 percent, to 5813.934. Within the index, 22 stocks fell, 17 rose and 11 were unchanged. Turnover was $116 million.
The benchmark index followed offshore markets lower as the latest breakdown in negotiations between Greece and its European creditors stoked concerns the Mediterranean nation will end up leaving the shared currency and monetary union. Japan's Nikkei 225 Index fell 0.6 percent in afternoon trading, while Hong Kong's Hang Seng declined 0.3 percent.
Investors looked to crystallise profits in the face of uncertainty. Steel & Tube, which manufacturers steel building products, dropped 1.7 percent to $2.89. Auckland Airport, the nation's busiest gateway, declined 1.4 percent to $5.05. Fletcher, New Zealand's largest listed company, fell 1.1 percent to $8.37. SkyCity Entertainment Group, the casino operator, retreated 1.2 percent to $4.25.
"A lot of it has to do what is happening over in Europe with Greece at the moment," said Grant Williamson, director at Hamilton Hindin Greene. "That's creating a little bit of nervousness in capital markets. The market is going through a consolidation phase, where the buyers are not in control and neither are the sellers, so it just seems quite evenly poised."
Dividend paying companies gained as investors hunt for yield in a globally low interest rate environment. Property For Industry climbed 1.3 percent to $1.56. Spark New Zealand, formerly Telecom Corp, advanced 0.9 percent to $2.785. MightyRiverPower, the state owned energy retailer and generator, gained 0.7 percent to $2.75. State-controlled Meridian Energy rose 0.5 percent to $2.19.
"We're relatively well supported given offshore markets were a bit weaker last night, obviously investors are still chasing yield," Williamson said. "At the moment you've got interest rate investors looking for higher yield, but on the slip side of that you've got the profit takers in the market place deciding to take some profits on what's been a very good run."
A2 Milk Co, the milk marketing company, led the benchmark index lower down 1.7 percent to 57 cents.
Pacific Edge, the non-invasive bladder test developer, was the best performer on the benchmark index, advancing 3.3 percent to 62 cents.
Outside the benchmark index, Kirkcaldie & Stains was unchanged at $2.22. Veteran corporate raider Ron Brierley has lifted his stake in the ailing department store by 1.2 percent to 6.9 percent ahead of its payday from Australia's David Jones.
BusinessDesk.co.nz
No comments yet
Second St John withdrawal of labour takes effect tomorrow with further strikes likely
Sanford Appoints Independent Director
CRP ADVISES CLOSURE OF SHARE OFFER TO EXISTING INVESTOR
Devon Funds Morning Note - 14 August 2024
OCR 5.25% - Monetary restraint tempered as inflation converges on target
Consumers still need due diligence as new deposit takers emerge.
Woolworths strike: staff asked to dress up in Disney costumes for a week on their own dollar
Turners Invests in Quashed Online Insurance Platform
PGW Reports on Challenging Year
Arvida Announces Executive Team Changes