MARKET CLOSE: NZ shares extend fall on OCR disappointment   24 Jul 2015

Article - BusinessDesk

MARKET CLOSE: NZ shares extend fall on OCR disappointment; Meridian, Genesis drop

By Suze Metherell

July 24 (BusinessDesk) - New Zealand shares extended their fall from a record, led by Meridian Energy, as investors remained disappointed by yesterday's smaller interest rate cut than expected. Genesis Energy and Fletcher Building declined.

The S&P/NZX 50 Index fell 7.12 points, or 0.1 percent, to 5894.18. Within the index, 24 stocks fell, 22 rose and four were unchanged. Turnover was $90.2 million.

Investors sold equities for a second day after the Reserve Bank yesterday cut the official cash rate to 3 percent. The benchmark index rose to a record in the lead-up to the decision on an expectation RBNZ governor Graeme Wheeler would be more aggressive in reducing interest rates.

Stocks held for their steady dividends fell. Meridian dropped 2.3 percent to $2.13. Genesis declined 1.1 percent to $1.76. MightyRiverPower fell 0.4 percent to $2.79. DNZ Property Fund slipped 0.2 percent to $2.155. Fletcher Building fell 0.3 percent to $8.05.

"The market rallied going into the RBNZ meeting on the expectation that rates would get cut and then it was a case of they'd already moved so you've seen a little bit of disappointment afterwards," said Mark Lister, head of private wealth research at Craigs Investment Partners. "It's a combination of two things - people had probably expectations of more, and they were disappointed and the market rallied going into the result."

Orion Health Group, the health management software firm, was the best performer on the day climbing 2.8 percent to $3.99. Pacific Edge, the bladder cancer test developer, rose 1.6 percent to 63 cents.

Trade Me Group, the online auction site, rose 1.5 percent to $3.46. It corrected an Australian media report today, saying it wasn't participating in any process to buy Fisher & Paykel Finance.

Kathmandu Holdings rose 0.6 percent to $1.76. Briscoe Group, the retailer controlled by managing director Rod Duke, is offering Kathmandu shareholders a mixture of cash and scrip which equates to a 4 cent premium on the outdoor equipment retailer's last trading price. Briscoe was unchanged at $2.80.

A2 Milk advanced 1.3 percent to 81 cents.

Chorus fell 0.9 percent to $2.815. Australian fund manager L1 Capital has cashed up part of its stake in the local telecommunications network operator, booking a 34 percent gain over the past year.

Outside the benchmark index, Comvita rose to a fresh record for the second consecutive day up 2 percent to $5.10. The Te Puke-based maker of health products based on manuka honey told its annual shareholders' meeting is expected a 35 percent gain in annual earnings, up from annual profit of $10.2 million in the year ended March 31.

(BusinessDesk)

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