Fletcher, Pumpkin Patch fall but it could have been worse

Contractors Jack Visser (left) and Alan Parkin watch as the downward trend continues on a NZX stock exchange display board in the foyer of Quay Towers in central Auckland. Photo / Kenny Rodger

New Zealand stocks fell yesterday but outperformed in a global sell-off amid perceptions the local economy is in relatively good shape.

The NZX 50 Index fell 27.61, or 0.8 per cent, to 3315.74. Within the index, 65 stocks fell and 29 rose. Trading was valued at a lower-than-average $54.8 million. The local bourse held up better than its peers in the Asia-Pacific region.

Japan's Nikkei 225 Index dropped 1.78 per cent, mirroring declines on Wall St on Friday, while Hong Kong's Hang Seng was down 4.4 per cent and Australia's S&P/ASX 200 Index
dropped 2.8 per cent. Trading in Asia was relatively subdued with the Chinese market
closed for week-long holidays.

"Markets sold off following a pretty nasty close on Friday at the end of the quarter,'' said James Lee, head of institutional sales at First NZ Capital. "The news flow this week will still be quite ugly, with no resolution from European leaders.'' Stocks and the kiwi dropped on Friday after Fitch Ratings and Stand ard & Poor's lowered the sovereign
rating one notch to AA, still a strong investment-grade rating.

"The New Zealand economy is in better shape despite what S&P has to say,'' Lee said.
"We're still expecting growth this year.'' Pumpkin Patch fell 4.9 per cent to 78 cents. Goodman Fielder declined 3.3 per cent to 58 cents and Westpac shed 3.7 per cent to $24.70, pacing declines in banks on the Australian market. Fletcher Building declined
2.6 per cent to $7.55.

Tower was unchanged at $1.39. Freightways rose 1.9 per cent to $3.26 after announcing it would acquire Iron Mountain New Zealand for $12.7 million. The Auckland-based company plans to merge the new unit into its own Online Security Services. The deal
will be funded from existing debt facilities.

Allied Farmers fell 25 per cent to 0.3 cent after the finance group said it wasn't able to file its annual report by the September 30 deadline.

Abano fell 2.2 per cent to $4, though on light volume. The health clinic investor said that it would continue aiming at its target of at least 20 per cent growth over the next five years.

Kirkcaldie & Stains, the upscale Wellington department store, fell 8.1 per cent to $2.62 after saying it made a loss in the 12 months through August
31 of less than $100,000.

At its annual meeting in February it had predicted pretax earnings of $500,000. The results reflect ``the depressed state of the retail environment and the reductions in government spending, which have impacted on Wellington retailers particularly''.