MARKET CLOSE: NZ shares fall; regulation threat hits Chorus 7 May 2012
- Hutson, Reeves seek SGM to vote on Janes ousting from Abano Business
- MARKET CLOSE: NZ shares rise on election speculation Business
- NZ dollar climbs to 2-week high vs. A$ on Aust CPI Business
- Equity crowd funding carries risks, high failure rate Business
- McDonald’s NZ annual sales rise 5.8% Business
- NZ migration rises to 11-year high in March as fewer kiwis leave for Australia Migration
- Millennium & Copthorne mulls capital return Business
- MARKET CLOSE: NZ shares rise on Genesis sentiment Business
- NZ dollar edges up as RBNZ rate review eyed Business
- Warehouse shares jump to 6-wk high after Craigs' buy rating 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.
23 Apr 2014 News
An East Coast iwi says they are concerned the Crown has not made good on its promise to return their wharenui – the oldest... more
23 Apr 2014 Business News
Article - BusinessDesk Equity crowd funding, latest step in much-hyped social capital, carries risks, high failure rate By... more
22 Apr 2014 Entertainment
Film and Stage Producer/Director Craig Hutchison, is pleased to be representing New Zealand at the Sunset Film Festival in Los ... more
17 Apr 2014 Entertainment
The winner of the fourth annual Taite Music Prize 2013 is Lorde for her album ‘Pure Heroine’ released on Universal Music... more
7 Apr 2014 Property
April 7 (BusinessDesk) – New Zealand property values increased at the slowest annual pace in six months in March as lower... more
23 Apr 2014 Migration
April 23 (BusinessDesk) – New Zealand migration rose to an 11-year high in March, the second-highest gain on record, as fewer... more
28 Mar 2014 Migration
Citizens of Croatia aged between 18 and 30 will soon be eligible to apply for a New Zealand Working Holiday Visa, giving them the... more
23 Apr 2014 NZ Tourism
With 9,424 extra arrivals for the 12 months to the end of March, Germany has overtaken Japan to become New Zealand’s fifth... more
22 Apr 2014 Sport
The New Zealand Open team departs today to commence their World Cup campaign in Europe. Their first assault will be on the ICF Canoe... more
23 Apr 2014 Opinion
Shane Jones has left Parliament in the manner to which we have become accustomed, with self interest coming in first and second, and... more
23 Apr 2014 Appointments
Prime Minister John Key today announced the appointment of Cheryl Gwyn as Inspector-General of Intelligence and Security. The... more
17 Apr 2014 Appointments
April 17 (BusinessDesk) – Bank of New Zealand, the local unit of Australia’s third-biggest mortgage lender, named the... more
15 Apr 2014 Recruitment
The average annual wage is expected to increase by $7,500 to around $62,200 a year by 2018 if New Zealand achieves its ... more