Market close: NZ shares fall, paced by Telecom, Chorus, Fletcher
BUSINESSDESK: New Zealand shares extended their slide from a two-month high, paced by the biggest companies on the bourse, Telecom, Chorus and Fletcher Building, as offshore investors lightened their NZX holdings.
The NZX 50 Index fell 28.07 points, or 0.8%, to 3467.33. Within the index, 26 stocks fell, 17 rose and seven were unchanged. Turnover was about $104 million.
Telecom, the largest company of the exchange, dropped 3% to $2.47. Fletcher Building, the nation’s biggest construction company, declined 1.7% to $5.88.
Chorus, the fixed-line telecommunications network operator which demerged from Telecom in November, slipped 3.7% to $3.16.
"Telecom and Chorus are two of the stocks that the international investors seem to be out of," said Mark Lister, head of private wealth research at Craigs Investment Partners. "Maybe it’s a bit of profit taking or maybe its people being more upbeat about the global environment."
Among indicators of health in corporate trading were better-than-expected second-quarter earnings from investment bank JPMorgan & Chase. The investment bank reported net income of almost $US5 billion in the three months ended June 30.
"Earnings season has the potential to be a market mover," Mr Lister said. "It will remind people there is still life out there – that the good companies are still delivering and performing."
Goodman Fielder, the Australasian food manufacturer, fell 4.2% to 67 cents, leading the index lower.
Cavalier, New Zealand's only listed carpet maker, led the gainers up 3.3% to $1.56.
"It is a really quite a good company," Mr Lister said. "If you want to take a higher risk position it’s a pretty good one to invest in."
Tower, the insurance company controlled by Guinness Peat Group, rose 3% to $1.65. GPG, which has been looking to sell-down its holding in the insurance company, rose 2.2% to 47 cents.
OceanaGold rose 1.3% to $2.40 even as the Macraes goldfield operator announced its Didipio gold and copper project in the Philippines is now estimated to cost $US220 million – $US35 million more than the company announced in June last year.