MARKET CLOSE: NZ shares mixed amid weak China manufacturing 1 Sep 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 weak China manufacturing spurs regional selloff; ANZ, Westpac, Chorus decline
By Suze Metherell
Sept. 1 (BusinessDesk) - New Zealand shares were mixed as shrinking manufacturing activity in China raised fears about the world's second-biggest economy, and spurred a selloff in equity markets across Asia-Pacific. Australia New Zealand Banking Group, Chorus and Westpac Banking Corp declined.
The S&P/NZX 50 Index slipped 1.26 points, or 0.02 percent, to 5654.98. Within the index, 19 stocks fell, 19 rose and 12 were unchanged. Turnover was $200 million.
A gauge of Chinese manufacturing activity showed industrial production shrank in August, spooking investors who are still nervous after last week's movements, which included the biggest one-day drop on the NZX 50 in four years. Across the Tasman, Australia's S&P/ASX 200 Index declined 1.2 percent in afternoon trading, China's Shanghai Composite Index fell 1.1 percent and Japan's Nikkei 225 Index dropped 1.5 percent.
"We're seeing another bumpy day out of Asia, China was down 3 or 4 percent at one stage and have since rallied back, so there is still a bit of anxiety about that," said Shane Solly, director at Harbour Asset Management. "But the New Zealand market is holding up pretty well versus weakness elsewhere."
Dual-listed stocks fell amid the volatility. ANZ declined 0.5 percent to $30.75. Westpac fell 0.4 percent to $34.27. Chorus, the telecommunications network builder, dropped 1.6 percent to $2.52.
"Sentiment has taken a bit of a hit and it takes time for people to absorb the change and we're going through that now," Solly said. "Markets will stay volatile for a little bit longer."
A2 Milk Co was unchanged at 70 cents. The milk marketing company said "no takeover offer is imminent" after US-based Dean Foods and Australian-based Freedom Foods stopped talking about their offer which was made in June. A2 today asked for its NZX traded shares to be halted pending an announcement shortly after the market opened, after its shares dropped 7.1 percent to 65 cents. Yesterday, ASX-listed Freedom Foods said it had "ceased detailed discussion in relation to A2" with Dean Foods, and is still reviewing its 18 percent holding in the firm, "including evaluating the benefits of maintaining a strategic stake".
"There was a little bit of noise about A2 Milk," Solly said. "It's fair to say the fact the offer has not been formally withdrawn muddies the water somewhat. It does create a bit of uncertainty."
Spark New Zealand fell 2.1 percent to $3.31, as investors looked to crystallise recent gains. 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.
"It's not a surprise to see it hitting its peak," Solly said.
Pacific Edge led the benchmark index lower for a second day, down 3.7 percent to 52 cents. The biotech firm is the worst performer this year, down some 36 percent.
NZX, the stock market operator, dropped 2 percent to 98 cents, its lowest level since December 2011.
Summerset Group declined 2.6 percent to $3.75. The retirement village developer is the benchmark index's best performer this year, climbing some 36 percent.
Infratil, the infrastructure investment firm, was the best performer on the day, advancing 4.3 percent to $3.31.
Fletcher, the construction and building supplies firm, rose 1.1 percent to $7.28. Freightways, the logistics and courier firm, gained 2.7 percent to $5.39.
On the New Zealand Alternative Index, Just Water International was unchanged at 14 cents. The water cooler and supplies business, which is 79 percent owned by founder Tony Falkenstein, reported a 17 percent drop in annual profit to $1.1 million, as restructuring costs weighed on the bottom line.
Snakk Media rose 4.2 percent to 5 cents. Founder Derek Handley will step down as chairman of the mobile advertising technology company by the end of the year in a wider boardroom shuffle.
(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