Sharechat Logo

MARKET CLOSE: NZ shares fall; Steel & Tube, Auckland Airport decline

Tuesday 16th June 2015

Text too small?

New Zealand shares fell in a Asia-Pacific region-wide sell off, as offshore uncertainty spooked investors. Steel & Tube Holdings, Auckland International Airport and Fletcher Building fell. 

The NZX 50 Index fell 6.035 points, or 0.1 percent, to 5813.934. Within the index, 22 stocks fell, 17 rose and 11 were unchanged. Turnover was $116 million.

The benchmark index followed offshore markets lower as the latest breakdown in negotiations between Greece and its European creditors stoked concerns the Mediterranean nation will end up leaving the shared currency and monetary union. Japan's Nikkei 225 Index fell 0.6 percent in afternoon trading, while Hong Kong's Hang Seng declined 0.3 percent.

Investors looked to crystallise profits in the face of uncertainty. Steel & Tube, which manufacturers steel building products, dropped 1.7 percent to $2.89. Auckland Airport, the nation's busiest gateway, declined 1.4 percent to $5.05. Fletcher, New Zealand's largest listed company, fell 1.1 percent to $8.37. SkyCity Entertainment Group, the casino operator, retreated 1.2 percent to $4.25.

"A lot of it has to do what is happening over in Europe with Greece at the moment," said Grant Williamson, director at Hamilton Hindin Greene. "That's creating a little bit of nervousness in capital markets. The market is going through a consolidation phase, where the buyers are not in control and neither are the sellers, so it just seems quite evenly poised."

Dividend paying companies gained as investors hunt for yield in a globally low interest rate environment. Property For Industry climbed 1.3 percent to $1.56. Spark New Zealand, formerly Telecom Corp, advanced 0.9 percent to $2.785. MightyRiverPower, the state owned energy retailer and generator, gained 0.7 percent to $2.75. State-controlled Meridian Energy rose 0.5 percent to $2.19.

"We're relatively well supported given offshore markets were a bit weaker last night, obviously investors are still chasing yield," Williamson said. "At the moment you've got interest rate investors looking for higher yield, but on the slip side of that you've got the profit takers in the market place deciding to take some profits on what's been a very good run."

A2 Milk Co, the milk marketing company, led the benchmark index lower down 1.7 percent to 57 cents.

Pacific Edge, the non-invasive bladder test developer, was the best performer on the benchmark index, advancing 3.3 percent to 62 cents.

Outside the benchmark index, Kirkcaldie & Stains was unchanged at $2.22. Veteran corporate raider Ron Brierley has lifted his stake in the ailing department store by 1.2 percent to 6.9 percent ahead of its payday from Australia's David Jones.

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report