New Zealand shares fell, sending the NZX 50 Index to its first drop in five
sessions, as further signs of a prolonged worldwide slump drove down equities
from Tokyo to London and New York.
The NZX 50 fell 43.949, or 1.6%, to 2742.835 as at the 5 p.m. close of trading
in Wellington. Within the index, 26 stocks declined, nine rose and 15 were unchanged.
The local benchmark lagged behind the decline in the Standard & Poor’s
500 Index, which dropped 3.4% overnight after figures showed a slump in U.S.
retail sales, stoking concern about a prolonged recession.
Fisher & Paykel Appliances, which depends on consumer demand for its cookers,
washers and fridges in the U.S., Australia and New Zealand, fell 3.6% to NZ$1.34,
extending its 12-month slide to 52%. Telecom Corp. fell 5.2% to NZ$2.35 and
jewellery chain Michael Hill International dropped 3.6% to 53 cents. Goodman
Fielder fell 6.4% to NZ$1.75, leading the NZX 50 Index lower.
The New Zealand benchmark fell less today than indexes in Tokyo, Hong Kong and
Australia – all down more than 3% - reflecting the New Zealand bourse’s
lack of exposure to commodity and cyclical stocks and the nation’s backwater
status, according to Barry Lindsay, research manager at First NZ Capital.
BHP Billiton, the world’s largest mining company, and Rio Tinto helped
drive the S&P/ASX 200 Index down 4% in late afternoon trading as figures
showing weak U.S. retail sales fueled concern about the downturn and weighed
on prices of commodities such as copper. Australian shares also dropped after
government figures showed the jobless rate rose to a two-year high of 4.5% last
month from 4.4% to 3539.3 after a 43,900 plunge in full-time employment.
The Nikkei 225 Index fell 4.2% to 8089.62 in early afternoon trading in Tokyo
after Japanese machinery orders fell more than expected. In Hong Kong, the Hang
Seng fell 5.4%.
New Zealand’s market is “somewhat defensive” because its biggest
stocks include a phone company, Telecom, and a utility, Contact Energy, First
NZ Capital’s Lindsay said. “We’re in a better position than
Australia, with less exposure to commodity stocks. When things go off the boil
they suffer materially – it plays on global growth.”
The market may also be somewhat sheltered by turmoil in larger markets, which
has diverted the attention of overseas investors, Lindsay said. Activity is
New Zealand shares may also be down among Australian investors because of the
amount of capital raising by companies across the Tasman in the past few months,
including A$10 billion by the biggest three banks and a similar amount by listed
property trusts, he said.
Meantime, Prime Minister John Key held a meeting of senior ministers today to
discuss the deteriorating economy and said a briefing from the Treasury flagged
the prospect that growth won’t revive this year after the first recession
in a decade. He named NZX Ltd. chief executive Mark Weldon as head of the employment
summit he has called in Auckland next month.
Air New Zealand fell 2.2% to 91 cents amid concern the global downturn will
reduce demand for travel.
The outlook for tourist arrivals this year is “challenging,” Shamubeel
Eaqub, economist at Goldman Sachs JBWere said in a report today. While a weaker
kiwi dollar will provide some offset to the impact of global recession, Eaqub
forecasts visitor arrivals to fall 5.3% in 2009 and 0.2% in 2010.
The New Zealand dollar tumbled to 53.40 U.S. cents today from 55.19 cents yesterday
after a slump in U.S. retail sales and weaker economic data from Europe drove
down stocks and sapped demand for higher yielding, or riskier investments.
Companies that benefit from a weaker currency were among the biggest gainers
today. Fisher & Paykel Healthcare, which gets 80% of its revenue in U.S.
dollars, rose 1.2% to NZ$3.28.
The manufacturer of breathing masks and respirators “is going to do exceedingly
well this year profit-wise,” Lindsay said.
Sanford Ltd., which catches and exports fish, climbed 1.9% to NZ$5.35. Steel
& Tube Holdings rose 5.3% to NZ$3, leading gainers today.
(Businesswire.co.nz)
NZX Top 50
Last updated: 15/01/2009 5:09pm
| AIA |
1.71 |
+0.02 |
 |
| AIR |
0.91 |
-0.02 |
 |
| AMP |
6.45 |
-0.13 |
|
| ANZ |
18.50 |
0.00 |
 |
| APN |
2.68 |
0.00 |
|
| APT |
0.99 |
0.00 |
|
| CAV |
1.90 |
-0.05 |
|
| CEN |
7.30 |
-0.15 |
|
| EBO |
4.25 |
-0.05 |
|
| FBU |
5.85 |
-0.04 |
|
| FPA |
1.34 |
-0.05 |
|
| FPH |
3.28 |
+0.04 |
|
| FRE |
2.86 |
-0.07 |
|
| GFF |
1.75 |
-0.12 |
|
| GMT |
0.97 |
+0.01 |
|
| GPG |
0.92 |
-0.02 |
|
| HLG |
2.15 |
0.00 |
|
| IFT |
1.64 |
0.00 |
|
| IMP |
1.09 |
-0.01 |
|
| ING |
0.67 |
0.00 |
|
| KIP |
1.02 |
-0.03 |
|
| LNN |
9.71 |
0.00 |
|
| MFT |
4.72 |
-0.08 |
|
| MHI |
0.53 |
-0.02 |
|
| MVN |
1.24 |
0.00 |
|
| NPX |
3.10 |
0.00 |
|
| NZO |
1.23 |
-0.01 |
|
| NZR |
5.80 |
0.00 |
|
| NZS |
0.60 |
+0.01 |
|
| NZX |
5.45 |
0.00 |
|
| PFI |
1.11 |
-0.01 |
|
| PGW |
1.45 |
-0.02 |
|
| POT |
6.32 |
-0.06 |
|
| PPL |
0.98 |
-0.02 |
|
| PRC |
1.00 |
-0.02 |
|
| RAK |
1.21 |
-0.02 |
|
| RYM |
1.40 |
0.00 |
|
| SAN |
5.35 |
+0.10 |
|
| SKC |
3.06 |
-0.06 |
|
| SKL |
0.77 |
0.00 |
|
| SKT |
3.90 |
-0.05 |
|
| STU |
3.00 |
+0.15 |
|
| TEL |
2.35 |
-0.13 |
|
| THL |
0.71 |
+0.01 |
|
| TLS |
4.45 |
+0.05 |
|
| TPW |
7.20 |
0.00 |
|
| TWR |
1.60 |
0.00 |
|
| VCT |
2.05 |
-0.07 |
|
| WBC |
20.40 |
+0.20 |
|
| WHS |
3.58 |
-0.07 |
|
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