NZ shares fall most across Asia; Z Energy still under pressure

Z Energy led the local market lower, falling 3.9 per cent to $6.10. Photo / File

New Zealand shares fell the most across Asia as Z Energy led the market lower for another day amid rising oil prices, growing competition and the threat of increased regulation.

The S&P/NZX 50 index dropped 108.33 points, or 1.2 per cent, to 8,802.26. Within the index 39 stocks fell, nine gained and two were unchanged. Turnover was $115.6 million.

The local market posted the biggest decline across Asia-Pacific. Australia's S&P/NZX 200 index was down 0.2 per cent in afternoon trading, Hong Kong's Hang Seng fell 0.3 per cent, and Japan's Topix was down 1.1 per cent.

Z Energy led the local market lower, falling 3.9 per cent to $6.10, the lowest close since February 2016. The share price has dropped 11 per cent this week after the transport fuels company reported lower petrol volumes as oil prices rise. At the same time, it's facing increased competition from low-cost operators such as Waitomo and has the government threatening regulatory intervention.

Matt Goodson, managing director at Salt Funds Management, said the share price is under pressure from the operational data showing lower fuel volumes and what impact a Commerce Commission study into the fuel market will have on margins. Those regulatory powers are yet to be passed into law.

"It's a little convergence of difficulties for Z," he said.

New Zealand Refining fell 3.2 per cent to $2.43.

Ryman Healthcare fell 3.9 per cent to $12 on lighter than usual volumes. Metlifecare was down 2.5 per cent at $5.85 and Summerset Group declined 1.3 per cent to $6.85.

Goodson said housing data for September showed a slow market in what's typically a busy month, and that may be weighing on the retirement village operators.

Spark New Zealand reported the busiest activity with 2.6 million shares traded, with the stock rising 0.5 per cent to $3.90. Contact Energy fell 0.4 per cent to $5.61 on volume of 2.5 million and Meridian Energy was down 0.8 per cent to $3.11 on 2.2 million shares traded.

Auckland International Airport fell 1.3 per cent to $6.92 on a volume of 1.9 million. Kiwi Property Group was down 0.4 per cent at $1.35 on 1.8 million shares, and Air New Zealand fell 1.3 per cent to $2.74 on one million shares.

Restaurant Brands New Zealand slipped 2 per cent to $8.50, giving up some of yesterday's 14 percent gain. The fast-food operator has received an indicative takeover offer of $9.45 for three-quarters of the company. First NZ Capital raised its rating on the stock to 'neutral' and said the offer price was compelling.

Fletcher Building fell 2.1 per cent to $6.10 and Sky Network Television rose 1.3 per cent to $2.28. A2 Milk Co declined 1 per cent to $10.31.

Ebos Group slipped 0.5 per cent to $21.70 after saying it will pay A$50 million to buy out minority shareholders in Terry White Group.

Outside the benchmark index, Tilt Renewables slipped 0.9 per cent to $2.28 after raising earnings guidance while cutting the value of its Australian assets. The company is under a takeover offer from Infratil for $2.30 a share. Infratil fell 0.7 per cent to $3.435.

Pyne Gould Corp rose 6.1 per cent to 35 cents. After the close of trading, Pyne Gould issued a notice of a special meeting to vote on a plan to leave the NZX for Guernsey listing. The meeting will be held in Queenstown on October 31.