Kathmandu shares fell 1 per cent yesterday to $2.89. Photo / Natalie Slade
Kathmandu shares fell 1 per cent yesterday to $2.89. Photo / Natalie Slade
New Zealand shares fell yesterday, led by Xero, joining a worldwide sell-off as investors fretted over stalling global growth. Fletcher Building and Kathmandu Holdings declined as the local currency gained against its Australian counterpart.
The NZX 50 index fell 30.85 points, or 0.6 per cent, to 5132.02. Within the index,34 shares fell, eight rose and eight were unchanged. Turnover was $145 million.
Overnight, Wall St dropped as reports showed declines in US retail sales and producer prices fuelled concern about the pace of the global economy. Markets across Asia retreated, with Japan's Nikkei 225 index falling 1.8 per cent in afternoon trading, Hong Kong's Hang Seng declining 0.6 per cent, and Australia's S&P/ASX 500 index down 0.6 per cent.
"The main theme is global growth fears have re-emerged," said Matthew Goodson, managing director at Salt Funds Management.
Xero, the cloud-based accounting software firm, fell 4.5 per cent to a 13-month low of $16.96. The stock has declined 63 per cent from its March peak of $45.99.
Stocks with transtasman exposure fell after the kiwi dollar climbed as high as A91c in early morning trading. Kathmandu, the outdoor goods retailer that earns more than half its sales in Australia, fell 1 per cent to $2.89. SkyCity Entertainment Group, which operates casinos in Darwin and Adelaide, declined 0.9 per cent to $3.47.
Fletcher, New Zealand's largest listed company with Australian operations, dropped 1.6 per cent to $8.55.
Chorus, the telecommunications network operator, advanced 0.3 per cent to $1.895 and Spark, formerly Telecom, fell 0.4 per cent to $2.88.
Of the day's few gainers, state-controlled power company Meridian Energy rose 0.7 per cent to $1.55. Mighty River Power gained 0.8 per cent to $2.65. Contact Energy increased 1 per cent to $5.94. Genesis Energy was unchanged at $1.895.
On the NZ Alternative Index, Pulse Energy, the electricity retailer controlled by lines company Buller Electricity, fell 1.6 per cent to 6c.
