NZ stocks caught up in global sell-off

New Zealand Refining shares were up 1.2 per cent to $3.50 yesterday.

New Zealand shares fell in a global sell-off yesterday, as investors were cautious about economic growth.

Fletcher Building led the bourse lower, while Westpac Banking Corp and Australia and New Zealand Banking Group declined.

The S&P/NZX 50 Index dropped 28.52 points, or 0.5 per cent, to 5683.52. Within the index, 26 stocks fell, 17 rose and seven were unchanged. Turnover was a lighter-than-usual $89.3 million.

Markets across Asia fell, as traders digest last week's United States Federal Reserve decision to keep interest rates near zero, saying "recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term".

There is concern growth in China, the world's second-largest economy, is faltering, which may have wider implications for global growth.

The Fed highlighted that last week's rate review "came at a bad time - Chinese growth is slowing and some people believe it's going to be a hard landing," said Rickey Ward, New Zealand equity manager at JBWere.

"We don't - we have the view that yes it is slowing, but it is still healthy growth on a healthy number of years gone by. The commentary from the Fed just highlighted that," he said.

"What it's done has made people realise that actually global growth may be slowing, so there are a few things which are creating an element of unease and markets seem to be taking a bit of a breather until they get some clarity around some of these data points."

Dual-listed companies dropped. Fletcher fell 3.9 per cent to $7.24. ANZ declined 3.3 per cent to $31.15. Westpac fell 3.4 per cent to $34.52. Sky Network Television dropped 1.8 per cent. Summerset Group Holdings slipped 1.8 per cent to $3.70. Air New Zealand fell 1.6 per cent to $2.46. Trade Me Group declined 1.6 per cent to $3.69.

New Zealand Refining Company advanced 1.2 per cent to $3.50. The oil refiner marked its first day on the benchmark index, after it overtook Pacific Edge to enter the top 50 stocks.

Outside the benchmark index, biotech firm, Pacific Edge rose 6.3 per cent to 51c.

Kathmandu, the outdoor goods chain which was the target of a failed takeover bid by Briscoe Group, rose 5.7 per cent to $1.48. Briscoe, the homewares and sporting goods retailer, declined 4.1 per cent to $2.83.