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Market Close: NZX 50 falls a second day, Warehouse drops

Tuesday 2nd December 2008

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New Zealand stocks fell, sending the NZX 50 Index lower for a second day, as concern about a deep global recession drove down equity markets worldwide.

The NZX 50 fell 31.78, or 1.2%, to 2651.14. Within the index, 29 stocks fell, 12 rose and nine were unchanged. Warehouse Group led shares lower, falling 6.7% to NZ$3.22. Skellerup Holdings fell 6.5% to 72 cents and Tourism Holdings fell 5.6% to 68 cents.

Stocks across Asia fell today on concern weakening economic growth will sap demand and erode corporate profits. The S&P/ASX 200 Index dropped 3.5% to 3552.9 in late afternoon trading, even after the central bank cut its benchmark interest rate by 100 basis points to 4.25%.

Woodside Petroleum and BHP Billiton were among commodity companies that fell as prices of raw materials and crude oil dropped. The Nikkei 225 Index fell about 5% to 7978.03 in mid-day trading.

“If you’ve got money and a long-term outlook you can still go for growth industries, there’s some wonderful bargains, but there’s too much pessimism about,” said Stephen Wright, private client adviser at ASB Securities.

Turnover was a paltry NZ$53 million, about half the average of more normal times, as volatility kept many investors out of the market.

Trading on the NZX slumped 25% last month as the global financial rout eroded demand for stocks, the exchange said in a statement today. The total value of trade fell 57% to NZ$1.4 billion in November from the same month of 2007 and the daily average traded dropped 53% to NZ$72 million.

New Zealand Oil & Gas fell 3.1% to NZ$1.26 as prospects of a prolonged global economic slump drove the price of crude oil to a three year low. Crude for January delivery dropped 1.7% to US$48.44 a barrel.

Telecom Corp. rose 0.4% to NZ$2.34 after the company scotched reports it has been approached by Pacnet with an offer of US$420 million for its AAPT unit in Australia.

The report is "purely speculative" and Telecom remains committed to AAPT, spokesman Mark Watts told BusinessWire.

Delegat’s Group rose 0.5% to NZ$2.01 after the winemaker that controls the Oyster Bay wine brand, said profit may rise 29% this year amid demand for its products in export markets. “The group continues to experience strong trading conditions,” managing director Jim Delegat told shareholders today.


NZX Top 50
Last updated: 2/12/2008 5:09pm

AIA 1.64 -0.08
AIR 0.85 -0.02
AMP 6.40 +0.20
ANZ 17.10 -0.40
APN 3.15 +0.05
APT 0.98 +0.01
CAV 2.01 0.00
CEN 6.50 -0.20
EBO 4.15 -0.10
FBU 5.38 -0.17
FPA 1.40 +0.05
FPH 3.08 -0.01
FRE 2.89 -0.06
GFF 1.65 +0.11
GMT 1.05 -0.01
GPG 0.95 +0.02
HLG 2.19 -0.06
IFT 1.73 +0.01
IMP 1.06 0.00
ING 0.65 -0.01
KIP 1.02 -0.01
LNN 10.50 +0.25
MFT 4.70 -0.10
MHI 0.58 0.00
MVN 1.30 0.00
NPX 3.52 -0.13
NZO 1.26 -0.04
NZR 6.30 -0.02
NZS 0.87 -0.01
NZX 5.55 -0.10
PFI 1.01 +0.01
PGW 1.60 +0.03
POT 5.80 -0.10
PPL 1.11 -0.02
PRC 0.98 0.00
RAK 1.46 -0.03
RYM 1.46 0.00
SAN 5.20 -0.10
SKC 2.99 -0.04
SKL 0.72 -0.05
SKT 3.22 -0.08
STU 2.76 0.00
TEL 2.34 +0.01
THL 0.68 -0.04
TLS 5.00 0.00
TPW 6.95 +0.15
TWR 1.47 -0.03
VCT 2.00 0.00
WBC 20.10 -1.10
WHS 3.22 -0.23


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