New Zealand shares fell, pushing the NZX 50 Index to a seven-day low, after figures showed the economy grew at half the pace expected in the fourth quarter. Telecom and Sky City Entertainment paced the decline.
BUSINESSDESK: New Zealand shares fell, pushing the NZX 50 Index to a seven-day low, after figures showed the economy grew at half the pace expected in the fourth quarter. Telecom and Sky City Entertainment paced the decline.
The NZX 50 Index fell 7.304 points, or 0.2 percent, to 3474.653. Within the index, 20 stocks fell, 24 rose and six were unchanged. Turnover was $95 million.
The New Zealand economy grew 0.3 percent in the fourth quarter, compared to consensus forecasts from economists and the central bank of a 0.6 percent pace. The kiwi dollar fell after the figures were released amid speculation the central bank will be less inclined to raise interest rates any time soon.
Telecom, which shed its dividend this week, fell 1.2 percent to $2.38. Chorus, the network business spun off from Telecom last November, declined 1.7 percent to $3.40. Sky City dropped 1.8 percent to $3.79.
"It is below what people expected and that has had an impact on the currency - when you sift through the result it will not be as bad," said Shane Solly, portfolio manager at Mint Asset Management. “The New Zealand story of late has been quite robust - we are consolidating after a good run last week."
Fletcher Building gained 0.9 percent to $6.95, edging back toward the five-month high of $6.98 reached on March 15. The GDP report showed construction activity increased 1.5 percent in the fourth quarter, with increases in both residential and commercial building work.
New Zealand Refining, which operates the nation’s only oil refinery, fell 4.9 percent to $2.91, the biggest decline on the NZX 50 today. Last month the company posted a 40 percent drop in full-year profit as refining margins shrank.
Guinness Peat Group, the investment company that is winding down its portfolio of assets and returning capital to shareholders, fell 3.7 percent to 51 cents.
Pumpkin Patch, the children’s clothing retailer, dropped 2.9 percent to $1.
Rakon, which has manufacturing plant in China, fell about 2 percent to 50 cents. HSBC’s flash PMI for China showed manufacturing in the world’s second-biggest economy may be in for a fifth monthly contraction.
Argosy Property Trust climbed 3.1 percent to 84 cents, the biggest percentage gain on the benchmark index.
AMP, the Australian wealth manager, led gains in Australian financials, rising 1.7 percent to $5.52. Westpac gained 1.5 percent to $27.45 and Australia & New Zealand Banking Group rose 1 percent to $29.15.
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