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NZX CLOSE: NZ shares slide as global risk appetite wanes; FBU, CEN, TEL fall

Friday 22nd January 2010

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New Zealand shares fell, joining a worldwide sell-off amid concern curbs on banking proposed by U.S. President Barack Obama and higher interest rates in China will slow economic recovery. The three biggest stocks on the index, Fletcher Building, Telecom Corp. and Contact Energy, fell.

The NZX 50 Index declined 34.86, or 1.1%, to 3190.42, the largest decline this year and the ninth drop in 10 sessions. Within the index, 23 stocks fell, six rose and 21 were unchanged. Turnover was $72.9 million.

Japan’s Nikkei 225 Index led the decline in Asian benchmarks, sliding about 3% in early afternoon trading. Australia’s S&P/ASX 200 fell 1.9% and Hong Kong’s Hang Seng declined 2.5%. The Dow Jones Industrial Average fell 2% in the U.S. after Obama said he wanted to restrict proprietary trading by banks and limit their size as part of moves to prevent another financial crisis. China’s central bank will raise interest rates by mid-year, according to a Bloomberg survey.

“Risk appetite is pretty small,” said Craig Brown, who helps manage about $1 billion at ING New Zealand. “We’re in an environment where we’re still a bit unsure how things are panning out in key markets like the U.S. That heightens the level of uncertainty out there.”

Fletcher Building (NZX: FBU ), the nation’s biggest construction company, fell 2.2% to $7.97, the first time it has dipped below $8 this month. Telecom Corp (NZX: TEL ) slid 1.2% to $2.41. Contact Energy (NZX: CEN ) fell 2.6% to $6 after the biggest utility on the benchmark index said first-half retail electricity sales declined 4.2%.

Fisher & Paykel Appliances (NZX: FPA ) dropped 4.7% to 61 cents, leading the NZX 50 lower.

Pan Pacific Petroleum (NZX: PPP ) fell 4% to 48 cents after crude oil sank on data showing U.S. refineries reduced output because of lower demand for fuel. Crude for March delivery fell below US$76 a barrel, trading at US$75.75 in Asia.New Zealand Oil & Gas fell 1.8% to $1.60. New Zealand Refining fell 3% to $3.90.

Pike River Coal (NZX: PRC ), which is building up supplies of coking coal from its South Island mine in preparation for the first 20,000 tonne shipment worth $3.4 million next month, fell 3.8% to $1.01. A second, 40,000 tonne shipment is scheduled for the April-June quarter.

Nuplex Industries (NZX: NPX ) climbed 4.9% to $3.20 after the specialty chemicals company said it made a record first-half profit, lifted its full-year forecast and reinstated its interim dividends.Profit in the six months ended Dec. 31 exceeded Nuplex’s previous record of $60.6 million in the first half of 2008, managing director John Hirst said in a statement.

“Trading conditions remain solid through November and December and raw material costs were stable, while our businesses continue to operate at increased levels of efficiency,” Hirst said.

AMP NZ Office Trust (NZX: AMP ) rose 2.4% to 75 cents, snapping a three-day slide that was sparked by the Tax Working Group’s proposals to overhaul property tax rules.Goodman Property Trust rose 1% to $1.01.

 

 

 

Businesswire.co.nz



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