Sanford leads decliners as market awaits EU summit

Rakon fell to 44c. Photo / Natalie Slade

New Zealand shares fell in a generally weaker day across Asia ahead of the EU summit that takes place overnight.

Sanford, which has been indicted on pollution charges in the US, led the decline, chased by Rakon at a record low and Fletcher Building.

The NZX-50 Index fell 13.09, or 0.4 per cent, to 3269.95. Within the index, 27 stocks fell, 14 rose and 10 were unchanged. Turnover was a relatively tepid $67 million. Daily turnover in November was more than $100 million.

Sanford, which is carrying a 14c final dividend, dropped 8.9 per cent to $3.89. The fishing company says it will vigorously defend charges resulting from a US Coast Guard investigation in American Samoa.

They allege Sanford's skipjack tuna vessel discharged bilge water and obstructed justice to conceal its activities. Fines could be up to US$500,000 on each count and more than US$24 million in forfeiture of proceeds. "The stock has been sold off viciously" on the news, said Greg Easton, adviser at Craigs Investment Partners.

Rakon fell 2.2 per cent to 44c, a record low close and less than a third of its 2006 IPO price of $1.60.

The crystal timing devices manufacturer is battling a kiwi dollar that is 21 per cent higher than when the company went public five years ago and increased competition in markets made up of smart phone makers and navigation system firms.

Fletcher Building fell 2.1 per cent to $6.18 having recovered from as low as $5.80 in late November.

Argosy Property Trust fell 0.6 per cent to 79c. The property investor internalised its management contract at a cost of $21.6 million and the company said yesterday that the Inland Revenue Department will allow the transaction to be tax-deductible.

Telecom rose 2.5 per cent to $2.08 while its spun-off network business, Chorus, fell 0.7 per cent to $3.01.

AMP Capital Investors issued another disclosure notice showing its shareholding in Chorus has risen close to 10 per cent while the Accident Compensation Corporation's holding has risen to 6.7 per cent. Chorus briefly fell below its listing price this week on sellers who are weighted to indexes it has dropped out of.

PGG Wrightson fell 2.7 per cent to 36c and Mainfreight fell 2.5 per cent to $9.86.