Market close: NZ shares fall in face of manufacturing dip
BUSINESSDESK: New Zealand shares fell after manufacturing data from around the globe pointed to sluggish demand, weighing on companies including Nuplex Industries.
The NZX 50 index fell 10.19 points, or 0.3%, to 3399.19. Within the index, 31 stocks fell, 15 rose and four were unchanged. Turnover was about $89 million.
Nuplex, which makes specialty chemicals it sells in most parts of the world, fell 3.8% to $2.52. NZ Oil & Gas declined 2.5% to 77 cents.
"Nuplex and NZOG have come off the boil," said Shane Solly, portfolio manager at Mint Asset Management. "Nuplex especially is subject to global uncertainty."
Retailers' were down led by Kathmandu falling 3.5% to $1.40. Children's clothing retailer Pumpkin Patch dropped 2.2% to 89 cents and Michael Hill International slipped 2.9% to $1. Shares in Hallenstein decreased about 1% to $4.05.
Rakon, which makes crystal oscillators used in navigation systems and smart phones, fell 4.6% to 42 cents. The company dropped out of the benchmark NZX 50 Index this month.
Air New Zealand rose 1.7% to 87.5 cents. The state-owned carrier this week named Christopher Luxon as its new chief executive. He will replace Rob Fyfe in December.
"With oil down at US$78.76 US it's quite helpful for them - in April it was US$105 a barrel - that is certainly spurring some enthusiasm," Mr Solly said.
F&P Healthcare, which makes breathing respirators and makes more than half its sales in US dollars, gained 0.5% to $1.93 after the New Zealand dollar fell from its seven-week high to trade recently at 78.80 US cents.
The kiwi hit 80 cents yesterday after the economy expanded at twice the pace economists had expected.
The largest company on the exchange, Telecom, rose 1.4% to $2.46.
Seeka Kiwifruit Industries, fruit grower and coolstore, packhouse operator, was unhanged at $1.76 today, after surging 79% this year.
The company today said no antibiotic tainted fruit entered the market in a trial update.
The kiwifruit industry has been under pressure since the Psa-V bacteria were discovered in 2010, infecting more than 40% of New Zealand's kiwifruit.