MARKET CLOSE: NZX 50 falls a third day, after Wall Street slump

Wednesday 21st January 2009

New Zealand shares fell, pushing the NZX 50 Index lower for a third day, after bank losses sent shares tumbling in the U.S. and Europe amid concern the global recession is deepening.

The NZX 50 fell 4.44, or 0.2%, to 2705.04. Within the index, 20 stocks fell, 18 rose and 12 were unchanged. Turnover was NZ$80.4 million, according to Reuters data.

Stock exchange operator NZX fell 5.7% to NZ$5, though only 9,400 shares changed hands in a company with 24.6 million shares outstanding.

A survey released on Jan. 19 showed that while 23% of New Zealanders hold local stocks, just 8% plan to start or add to their equity holdings in the first three months of 2009. Some 75% held cash or kept their money on deposit in the fourth quarter, according to the ING Investors Dashboard Survey of wealthy individuals.

Australian & New Zealand Banking Group slid 3.7% to NZ$16.38 on the NZX, while Westpac Banking Corp. fell 2.1% to NZ$18.60 reflecting a decline in lenders worldwide on concern they’ll need more capital. State Street, the world’s biggest manager of money for institutions, slumped about 60% on the Standard & Poor’s 500 Index in New York after reporting soaring bond losses.

In London, Lloyds Banking Group tumbled 31% and Barclays Plc sank 17%, driving the FTSE 100 lower, after the U.K. government announced a second bailout for its banks.

On the NZX today, Warehouse Group fell about 3% to NZ$3.60, leading retailers lower, amid concern government figures showing retail sales were unexpectedly little changed in November masked underlying weakness in the sector.

The November figures included a rebound in car sales that will probably fizzle as car registrations decline and a gain in supermarket sales, according to Mark Walton, markets economist at Bank of New Zealand. Other store types showed little improvement in November, with spending on big ticket items such as furniture, hardware and appliances “again sluggish.”

Children’s clothing chain Pumpkin Patch fell 2.1% to 93 cents and jeweler Michael Hill International fell 1.9% to 53 cents.

Rural services company PGG Wrightson fell 2.5% to NZ$1.15, its third daily decline. Freightways slipped 4.3% to NZ$2.70 and Mainfreight declined 4.2% to NZ$4.50.

In Sydney, the S&P/ASX 200 Index fell about 1% to 3442.8. BHP Billiton fell 1% to A$28.66 after saying it would take a charge to close a nickel mine. Rio Tinto fell about 2% to A$37.25 after announcing cuts to aluminum output and the elimination of some 1,100 jobs. National Australia Bank fell 4.2% to A$17.61, leading banks lower, amid global concerns about losses at lenders.
Retailer David Jones fell 4.6% to A$2.52 after cutting its profit forecast.

In Tokyo, the Nikkei 225 Index fell 1.7% to 7932.09 in early afternoon as a stronger yen hurt exporters including Toyota Motor and jitters about banks drove down the shares of Mitsubishi UFJ Financial Group.

(Businesswire.co.nz)

NZX Top 50
Last updated: 21/01/2009 5:10pm

AIA	1.75	0.00
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