MARKET CLOSE: NZ shares fall; regulation threat hits Chorus 7 May 2012
- Port Nicholson votes down Shelly Bay sale, citing SFO probe Business
- MARKET CLOSE: NZ shares fall as global mood sours further Business
- NZ dollar heads for 0.9% weekly gain Business
- Harmoney has $30 mln on hand as it steps up Australia launch Business
- CORRECT: Innate Immunotherapeutics co-founder sues company Business
- Innate Therapeutics co-founder sues for royalties Business
- RESEND: Vero faces bigger bill for Canterbury quakes Business
- Vero faces bigger bill for Canterbury quakes Business
- Spark's Revera wins IRD's data centre contract Business
- NZ wool prices hold firm even with China absent Business
New Zealand shares fell for a third session, led by Chorus which dropped back to its low of the start of the year as investors fretted the regulator may be more aggressive than expected in controlling the telecommunications network company’s charges. Exporter Fisher & Paykel Healthcare rose as the kiwi dollar dropped to a four-month low.
The NZX 50 fell 9.65 points, or 0.3 percent, to 3450.13. Within the index, 32 stocks fell, 11 gained, and seven were unchanged. Turnover was $88.6 million, with Chorus and Telecom alone accounting for $46.2 million.
Chorus sank 6.5 percent to $3.04, extending Friday's 7.7 percent decline after the Commerce Commission indicated it wants to cut the wholesale price of access to its copper lines and left the door open for pricing in other services to come under the regulator's microscope.
“The market is fearful of regulation,” said James Lee, head of institutional equities at First NZ Capital. While the commission view is only a draft determination, the market has been surprised “how aggressively the commission was addressing this issue.”
Telecom rose 2 percent to $2.585. The telecommunications company is Chorus' biggest customer after spinning out the network company as a separate entity last year.
Telecommunications components maker Rakon fell 5.6 percent to 51 cents, while lender Heartland New Zealand fell 5.3 percent to 54 cents.
New Zealand's stock exchange followed a global decline, with markets around the Asia Pacific falling in the wake of weak US employment data on Friday and European election results that throw doubt on the continent's region-wide austerity programme.
That saw riskier assets such as the New Zealand dollar fall, and the local currency dropped to a new three-and-a-half-month low of 79.13 US cents.
That's helped local manufacturers who export their wares, with Fisher & Paykel Healthcare leading gainers as it rose 2.3 percent to $2.27. Fisher & Paykel Appliances rose 1.9 percent to 53.5 cents.
“We’ve definitely seen that with Healthcare – it has been very clear,” Lee said.
The downbeat mood stoked demand for infrastructure stocks, with Infratil gaining 1 percent to $1.96, Auckland International Airport up 1 percent to $2.58 and TrustPower gaining 0.9 percent to $7.60. Port of Tauranga gained 1 percent to $11.31.
Metlifecare sank 6.4 percent to $2.06 after the retirement village operator announced a $216 million cash and scrip deal to buy Vision Senior Living and Private Life Care Holdings. Shareholders in the rival village operators will get $206 million in Metlifecare shares. Vision Senior Living's investors will pay $10 million in cash for more shares which will pay down debt in Metlifecare.
5 Feb 2016 News
05 February 2016 Museum of Waitangi set to become a national and visitor Icon The new Museum of Waitangi, opened today by the... more
5 Feb 2016 Business News
Article - BusinessDesk NZ wool prices slip on higher kiwi dollar, reduced demand from China By Tina Morrison Feb. 5 ... more
5 Feb 2016 Business News
Article - BusinessDesk NZ directors more aware of risk, focus on cyber security Feb. 5 (BusinessDesk) - Directors of... more
5 Feb 2016 Lifestyle
4 February 2016What it is to be a Kiwi may depend of where you live – Auckland or elsewhere in New Zealand – with... more
4 Feb 2016 Property
Auckland's house sales volumes jump to 8-year high in January, Barfoot says Feb. 4 (BusinessDesk) - Auckland residential... more
5 Feb 2016 Migration
This Waitangi Day, New Zealand will roll out the welcome mat to 24 new citizens at Government House, and acknowledge over... more
21 Dec 2015 Migration
Article - Businesswire NZ net migrants reach all-time high 63,700 in boom November year for travel By Jonathan Underhill Dec. ... more
22 Jan 2016 Travel & Tourism
New Zealand Government Hon Nicky WagnerMinister of Customs 22 January 2016 More than 100,000 SmartGate users in one week Customs ... more
21 Jan 2016 Travel & Tourism
Wellington ratepayers to pay $8mln over 10 years for Canberra flights Jan. 21 (BusinessDesk) - Wellington City Council is... more
5 Feb 2016 Multisport
70 teams from 11 nations will come together in Kaiteriteri, Tasman this April for the fifth chapter of New Zealand’s premier ... more
22 Jan 2016 Opinion
We seem to be living in an era of virtual government, where governments promote only an illusion of policy kapow! rather than the... more
24 Dec 2015 Opinion
Column - Gordon Campbell Gordon Campbell on the Dotcom extradition decision Inevitably – and with justification –... more
5 Feb 2016 Appointments
New Zealand Government Hon Christopher Finlayson5 February 2016 GCSB Chief Legal Advisor Lisa Fong will become the Acting Director... more
22 Jan 2016 Flying Kiwi*
Warren and Mahoney Heading to Europe And the Olympics of Architecture Architectural graduate Antonia Lapwood has been awarded the... more
11 Dec 2015 Recruitment
11 December 2015 Minister for Tertiary Education, Skills and Employment Steven Joyce and Minister for Social... more
4 Dec 2015 Recruitment
New Zealand Government Hon Steven Joyce Minister for Tertiary Education, Skills and Employment 4 December 2015 Tertiary Education,... more