MARKET CLOSE: NZ shares fall as traders fear more volatility 31 Aug 2015
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
MARKET CLOSE: NZ shares fall as investors fear more volatility; A2, Xero, Skycity decline
By Suze Metherell
Aug. 31 (BusinessDesk) - New Zealand shares fell as investors remained cautious after last week's spike in volatility when equity markets were sold off on fears over the Chinese economy. Dual-listed stocks, such as A2 Milk Co, Xero, Skycity Entertainment Group and Australia and New Zealand Banking Group declined.
The S&P/NZX 50 Index slipped 14.24 points, or 0.3 percent, to 5656.24. Within the index, 38 stocks fell, eight rose and four were unchanged. Turnover was a bigger than usual $249 million.
Traders are still nervous after last week's movements, which included the biggest one-day drop on the NZX 50 in four years, as an uncertain outlook for China's economy spooked investors and weighed on equities. Meanwhile, the possibility the US Federal Reserve will begin hiking rates next month was reiterated over the weekend by Fed vice chair Stanley Fischer at a central bankers’ conference at Jackson Hole, Wyoming, which reduces the attraction of dividend paying stocks which are common on New Zealand's market.
"We're still expecting a bit of volatility, I don't think we're through the volatility that we experienced from last week so investors have been pretty cautious," Grant Williamson, director at Hamilton Hindin Greene, said. "It has been on the radar for some time now, just when the Fed will raise interest rates, but it's still not 100 percent clear when that will be. It's a bit up in the air and obviously investors don't like the uncertainty."
The S&P/ASX 200 Index declined 1.7 percent in afternoon trading, which added downward pressure on the local bourse, Williamson said.
Dual-listed stocks fell. A2 Milk, the milk marketing company, dropped 4.1 percent to 70 cents. Xero, the cloud-based accounting firm, retreated 2.5 percent to $13.90. SkyCity, the casino operator, fell 2 percent to $3.88. ANZ slid 1.9 percent to $30.91. Trade Me Group, the online auction site, declined 1.7 percent to $3.50.
Spark New Zealand was the best performer on the day, up 3.4 percent to a six-month high of $3.38. The telecommunications company, formerly known as Telecom Corp, has gained some 22 percent since it signalled plans on Aug. 21 to pay bigger dividends as it starts chasing revenue growth for the first time in six years.
"Ever since their result which has surprised the market in terms of the quality of the result and the dividend payouts, so that stock's been the best performer on the market since they announced that result," Williamson said.
Pacific Edge, the biotech firm, led the benchmark index lower, down 5.3 percent to 54 cents.
Outside the benchmark index, earning season largely wrapped up, Pyne Gould Corp, which restated its 2014 accounts to remove an anticipated gain on the sale of Perpetual Trust, declined 3.5 percent to 28 cents after it said 2015 profit shrank by 99 percent to 38,000 British pounds as interest income fell, expenses jumped and the asset management firm didn't get a repeat of the previous year's one-time gain.
Tenon, whose locally produced wood mouldings are sold in the US, surged 18 percent to $2.35 after announced its first dividend in 17 years after it trebled annual profit to US$6 million, as a rebound in the US housing market and a decline in the kiwi dollar against the greenback boosted earnings. Rubicon, the forestry biotech company which owns two-thirds of Tenon, rose 13 percent to 34 cents.
Allied Farmers dropped 11 percent to 5.7 cents after it posted an 88 percent drop in annual profit to $128,000 after an overhaul of the business increased the firm's tax bill, and as its profitable livestock unit was held back by the slowing dairy sector.
On the New Zealand Alternative Index, Foley Family Wines, which is controlled by American billionaire Bill Foley, was unchanged at $1.44. It said full-year operating earnings more than doubled on increased sales of bottled wine in Australia and New Zealand, and a "modest" profit from a growing pool of bulk wine.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more