New Zealand shares dropped with North Korean tensions spooking investors as the US Independence Day holiday left markets lacking direction. Spark New Zealand and A2 Milk Co fell while Xero and ERoad gained.
The S&P/NZX 50 Index declined 24.97 points, or 0.3 per cent, to 7,595.67. Within the index, 21 stocks fell, 17 rose and 12 were unchanged. Turnover was $106.9 million.
Stocks across Asia were mixed as the US holiday left investors somewhat rudderless, and easy to unsettle by North Korea's claim of the country's first successful intercontinental ballistic missile test that brings the United States within its reach. Investors will have more to ponder later in the week with Group of 20 meeting in Germany, where US President Donald Trump is slated to meet with both his Russian and Chinese counterparts, Vladimir Putin and Xi Jinping.
"The market has been tentative with the US market closed for Independence Day, we will get a better feel tomorrow when it opens back up," said Peter McIntyre, investment adviser at Craigs Investment Partners. "There has been a bit of geopolitical tension overnight too, North Korea has made investors a bit nervous."
Spark led the index lower, dropping 1.9 per cent to $3.84, which McIntyre said was giving up some gains made over the previous two sessions. A2 Milk fell 1.8 per cent to $3.87 and Arvida Group declined 1.5 per cent to $1.30 ahead of its annual meeting on Friday.
Xero was the best performer, gaining 1.7 per cent to $25.62, while Restaurant Brands New Zealand rose 1.3 per cent to $6.25 and Mainfreight gained 1 per cent to $23.60.
