NZ stocks: Market succumbs to offshore pressure

6.15pm


Shares fell in New Zealand today as the global malaise about equities caught up with the local market.

The NZSE-40 capital index closed down 13.67 points, or 0.69 per cent, at 1975.51, while the top-10 index lost 0.65 per cent to 889.14.

Turnover of 28.83 million stocks, valued at $104.69 million, was topped by Telecom's 10.62 million shares worth $53.06 million.

Grant Williamson of Hamilton Hindin Greene said the market was under pressure from falls overseas.

"It was quiet trading, with a soft tone and sellers having to accept there was no strong buying in the market at all," he said.

"The one bright spot, I would have to say, would be our largest company Telecom, which is holding up very well. After having a good day yesterday it's only lost 3c today to close at 499.

"AMP was one stock to buck the trend, that was up 10c at 1310. Of course, they've been under a huge amount of pressure recently with major problems in the UK market with some of their investments there."

A fall in the New Zealand dollar appeared to have helped AMP.

"Banks were under quite a bit of pressure in Australia, and that saw ANZ down 15c (at 1945), and WestpacTrust has taken quite a tumble recently -- they lost another 30c to close at 1410.

"With Westpac, it seems to be concerns with the BT Fund Management purchase recently, and what management said about now not being able to forecast double digit growth for the company, and some accounting procedure changes the company's made," Mr Williamson said.

Australia's third largest bank, Westpac bought most of the BT Financial Group for A$900 million ($1.04 billion) in August.

Today, Westpac announced Ann Sherry as new chief executive for its New Zealand operation.

Casino operating blue chip Sky City retreated 11c to 725 after hitting a record high yesterday.

"Sky City is considered defensive stock by the market, in this environment for a stock to have a record high it's doing very well. Just a bit of profit-taking," Mr Williamson said.

Contact Energy lost 2c to 380, Carter Holt Harvey also lost 2c, to 162, Independent Newspapers Ltd was down 9c to 291, Fisher & Paykel Healthcare lost 2c to 968, its sister stock Appliances shed 4c to 976, and Baycorp Advantage was off 13c at 295.

The Warehouse gained 2c to 719, Restaurant Brands was up 1c at 159 and Auckland Airport was unchanged at 434.

Among the smaller companies, Dunedin-based Scott Technology reported after the market closed that it had a six-fold increase in after-tax annual profit to $2.4 million.

Scott Technology shares closed unchanged at 190.

Turners Auctions was up 5c at 235, Briscoe Group lost 7c to 238, Ports of Auckland was down 5c at 595, and Port of Tauranga lost 9c to 816.

There were 68 falls and 19 rises on the 134 stocks traded.

In offshore markets, European blue-chips fell for the fifth straight session and ended near 5-1/2 half year lows, while Britain's FTSE-100 index closed just inside positive territory.

On Wall St, the blue-chip Dow Jones industrial average sank 215.22 points, or 2.87 per cent, to 7286.27, while the Nasdaq Composite fell 15.06 points, or 1.33 per cent, to 1114.15.

- NZPA