NZ shares fall as investors remain wary of Sky TV

Sky TV led the market lower, down 3.2 per cent at $1.22.

New Zealand shares fell, led lower by Sky Network Television, as investors remain wary of the pay-TV operator's plans to get into online streaming. A2 Milk's sheen also came off in a regional sell-off.

The S&P/NZX 50 Index dropped 90.67 points, or 0.8 per cent, to 10,807.61. Within the index, 36 stocks fell, eight rose, and six were unchanged. Turnover was $101.9 million, with just three companies trading on volumes of more than a million shares.

Sky TV led the market lower, down 3.2 per cent at $1.22 on a volume of 681,000 shares, in line with its 90-day 670,000 average. Chief executive Martin Stewart yesterday unveiled plans to use premium sports rights to attract and retain customers with new sports channels and a dedicated sport streaming service. Broking house Jarden has set an 'outperform' rating on the stock and a target price of $1.74.

"The move into streaming was a strong one by the new CEO but the market doesn't agree," said Greg Smith, head of research at Fat Prophets. "It is turning around a little bit for them."

Spark New Zealand, which is going head-to-head with Sky in premium sports content, fell 0.8 per cent to $3.89 on a volume of 2.8 million shares. It was the most active stock, but was still short of its 3.2 million average.

Fletcher Building rose 1.8 per cent to $5 with 2.2 million shares changing hands, more than twice its 958,000 average. SkyCity Entertainment Group declined 0.5 per cent to $3.96 on a volume of 1.3 million.

A2 Milk fell 1.4 per cent to $17.23, having hit an all-time earlier this week in the wake of upbeat port cargo data and several broker upgrades. The country's biggest listed company is one of the more volatile on the exchange, and often follows wider regional moves. Stock markets across Asia were down in late trading as weaker global manufacturing indicators and ongoing geopolitical tensions weigh on investors.

Smith said A2 remains the "glamour stock" on the local market, shrugging off concerns about tighter Chinese regulation of informal Daigou sales channels, although next month's earnings will be closely watched.

Utilities, infrastructure and property stocks have been a favourite in recent weeks among investors who have sought out reliable dividends in a low interest rate environment. Some of those yield plays were weaker today, with Auckland International Airport down 2.2 per cent at $9.39, Investore Property falling 2.1 per cent to $1.86, Chorus declining 2 per cent to $5.40 and Genesis Energy down 1.4 per cent at $3.46.

Contact Energy increased 0.4 per cent to $7.98 after releasing its June operating statistics, which Smith said were fairly solid.

Skellerup Holdings posted the day's biggest gain, up 2.1 per cent at $2.9 on a volume of 117,000 shares, less than its 160,000 average.

Outside the benchmark index, Metro Performance Glass dropped 5.1 per cent to 37 cents after providing subdued earnings guidance and saying it plans to cut debt at a faster rate.

"Investors are getting a bit restless with the company's efforts to turn things around," Smith said.

Blis Technologies jumped almost 14 per cent to 4.2 cents after it told shareholders a strong first quarter underpinned expectations for it to remain profitable this year.

Warehouse Group rose for a second day, up 3.6 per cent at $2.29, its highest close since March 2017, after it yesterday raised earnings guidance.

Infratil's 2022 infrastructure bonds paying annual interest of 6.85 per cent were the most traded debt security on a volume of 727,000. The notes closed at a yield of 3.25 per cent, up 9 basis points. Infratil shares fell 1.3 per cent to $4.63.