Market close: shares fall, Fletcher dips in absence of offshore buyers
Children's clothing chain Pumpkin Patch falls 3.4% to $1.14, the biggest percentage drop on the NZX 50 today.
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New Zealand shares fell, paced by Fletcher Building, which drifted off in the absence of offshore buyers and concern it needs to lift earnings to justify its current share price.
SkyCity Entertainment Group dropped after shedding its dividend.
The NZX 50 Index fell 2.15 points, or 0.01 percent, to 4340.73. Within the index, 21 stocks rose, 18 fell and 11 were unchanged. Turnover was $76.5 million.
Fletcher, the biggest company on the benchmark index, fell 1 percent to $8.58.
"With less demand from offshore we've seen that price continue to drift off," says Grant Williamson, a director at Hamilton Hindin Greene. Fletcher's last result "puts them on pretty unexciting fundamentals. We need to see higher earnings to warrant the share price where it is".
SkyCity fell 1.4 percent, or 6 cents, to $4.30 after going ex-dividend for its 10 cent interim payment, suggesting it would otherwise have gained.
Pumpkin Patch, the children's clothing chain, fell 3.4 percent to $1.14, the biggest percentage drop on the NZX 50 today.
Kathmandu, the outdoor equipment retailer, declined 0.8 percent to $2.45 ahead of its interim results tomorrow.
NZX, the stock market operator, rose 3 percent to $1.36.
"Mighty River Power does get closer," Mr Williamson says, referring to the imminent selldown of the state-owned power company, which is expected to invigorate trading on the NZX.
Mainfreight, which last week said it would not meet analyst estimates, rose 1.1 percent to $11.02.
"Investors know the quality of the management and the history of the company," Mr Williamson says.
Freightways rose 1.1 percent to $4.55 and NZ Oil & Gas climbed 1.2 percent to 86 cents.
Xero, the cloud-based accounting company, fell 3.1 percent to $10.88, having soared 223 percent in the past 12 months.
Guinness Peat Group rose 1.7 percent to 60.5 cents. Telecom fell 0.2 percent to $2.215.
(BusinessDesk)
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Market close: shares fall, Fletcher dips in absence of offshore buyers
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