MARKET CLOSE: Shares fall; Orion, Trade Me, Metroglass drop

New Zealand share fell as concerns about a slowing Chinese economy weighed on local equities. Orion Health Group, Trade Me Group and Metro Performance Glass fell in a broad-based sell off.

The S&P/NZX 50 Index fell 19.52 points, or 0.3%, to 5737.7. Within the index, 25 stocks fell, 18 rose, and seven were unchanged. Turnover was $118 million.

Markets have been rattled after China unexpectedly allowed its currency to weaken this week, following recent poor economic data and in a bid to help exporters in Asia's largest economy. The move stoked concern weaker consumer demand in China may be felt as far away as New Zealand, which counts China as its biggest export partner.

"The move from China was unexpected and now the question is how often do they do it and how far do they look to devalue," said Robert Garden, investment adviser at Craigs Investment Partners. "With what has been going over in China, it's probably unsettling things a wee bit. It leads to risk being taken off the table, and this is all happening against the backdrop of equity valuations that for the most part are still reasonably high although they're coming off a wee bit now."

Orion, the health management software firm, led the benchmark index lower down 3% to $3.85. Trade Me, the online auction website, dropped 2.8% to $3.11. Metro Glass, the country's largest glass provider, fell 2.7% to $1.42. Air New Zealand, the national carrier, declined 2.4% to $2.635.

SkyCity Entertainment Group fell 1.9% to $4.21. Yesterday the casino and hotel company lifted full-year profit 31% to $128.7 million as an improved win rate for its international business and strong growth in Auckland made up for a disappointing performance in Adelaide.

"It wasn't bad but the Adelaide operations, which have been causing a few troubles for a while, are still lingering away there in the background," Mr Garden said. "The business has a big capital expenditure programme coming up over the next four years and obviously we're going see any dividend growth out of the stock while that's occurring."

Auckland International Airport, the nation's busiest gateway, fell 0.7% to $5.22. Fletcher Building, the construction and building supplies firm, dropped 0.4% to $7.61. Spark New Zealand, formerly Telecom Corp, declined 1.44% to $2.73. Fonterra Shareholders Fund, units of which give the holder access to the Fonterra Cooperative Group's dividend stream, slipped 0.4% to $4.80.

Outside the benchmark index, Augusta Capital was unchanged at 94c. The property investor and fund manager has conditionally sold its Auckland Finance Centre for $87 million, pending due diligence by the undisclosed buyer and shareholder approval.

Pushpay Holdings surged 9.2% to $5.35 after the mobile payments app developer said it aims to lift annualised revenue to $100 million over the next three years, a tenfold increase from its current rate of sales.

Scales Corp jumped 2.5% to a record $2.05 after New Zealand's biggest apple exporter said it expects to beat its forecast for annual earnings following a strong performance from its horticulture unit. Earnings before interest, tax, depreciation and amortisation are expected to be 25 to 35% higher than its prospectus forecast of $41.2 million in calendar 2015.

(BusinessDesk)