MARKET CLOSE: Retailers fall on weaker consumer confidence

Thursday 22nd July 2010

New Zealand stocks fell, pushing the NZX 50 Index below 3000 after a survey showing weaker consumer confidence weighed on retailers including Warehouse, Pumpkin Patch and Hallenstein Glassons.

The NZX 50 fell 22.1 points, or 0.7%, to 2981. Within the index 27 stocks fell, 10 rose and 13 remained unchanged. Turnover was $49.1 million.

The ANZ-Roy Morgan Consumer Confidence poll showed consumer confidence had declined for a second month in a row, to 115.6 from 122 last month, as the man in the street felt the impact of higher electricity and petrol prices and ongoing weakness in the housing market.

Warehouse (NZX: WHS ) fell 2.2% to $3.53, Pumpkin Patch (NZX: PPL ) fell 2.1% to $1.85 and Hallenstein Glasson (NZX: HLG ) fell to 0.8% to $3.63.

Honey product company Comvita (NZX: CVT ) fell 2.2% to $2.20.

Vector (NZX: VCT ) paced decliners, falling 2.8% to $2.05 after a research report by First NZ Capital rated the stock as ‘underperform’. The shares have been hurt by proposals from the regulator to set regulated rates of return at levels which Vector believes fail to recognise the harsher lending environment post the global financial crisis

“Vector’s revenues are expected to take a hit if the Commerce Commission’s draft decision on input methodologies for electricity distribution in New Zealand is adopted, which is why they’ve taken this hit,” said Shane Solly, a portfolio manager Mint Asset Manager.

Sky Network Television (NZX: SKT ) fell 2.5% to $4.66 and Fisher & Paykel Appliances (NZX: FPA ) fell 1.8% to 54 cents.

Contact Energy (NZX: CEN ) fell 0.7% to $5.66 after a report by the Electricity Commission showed that the company is losing customers on the South Island due to power spike caused by weaknesses in the Cook Strait cable.

Pacing gainers on the NZX 50, Rakon (NZX: RAK ) rose 2.2% to 95 cents on news that it will buy the assets of French rival Temix for 400,000 euros, gaining access to satellite and space station transport applications to complement its existing European operations.

Kathmandu (NZX: KMD ) rose 1.4 to $2.08, and AMP NZ Office Trust (NZX: APT ) rose 1.4% to 71 cents.

Shares in tap-maker Methven (NZX: MVN ) rose 4.1% to six cents after the company forecast that it will deliver a "better result" in the financial year to March 2011. The company is still cautious about the fragility of the New Zealand and UK economic which could hamper its recovery.

Businesswire.co.nz

Comments from our readers

No comments yet