MARKET CLOSE NZ shares fall with global equities, commodities; OGC, Fonterra down

New Zealand shares fell, as weaker economic data from China and the US weighed on equity markets and commodity prices. OceanaGold, NZ Oil & Gas and Fonterra Shareholders’ Fund were among decliners.

The NZX 50 Index fell 26.87 points, or 0.6 percent, to 4427.83. Within the index, 30 stocks fell, 11 rose and nine were unchanged. Turnover was $157 million.

The benchmark index tumbled hard at the open after China reported sub-8 percent economic growth on Monday and reports of the Boston marathon bombings began to emerge. It clawed back some ground over the course of the trading day amid speculation Beijing may ease monetary policy to underpin growth.

OceanaGold, which operates the Macraes gold field, tumbled 8.8 percent to $2.44 as spot gold fell to the lowest level in more than two years. NZ Oil & Gas declined 5.8 percent to 82 cents as crude oil fell. The Thomson Reuters/Jefferies CRB Commodity Index fell 2.2 percent yesterday.

Fonterra Shareholders’ Fund dropped 2.4 percent to $7.20.

“There’s a little bit of infection from global markets,” said Shane Solly, portfolio manager at Mint Asset Management. “OceanaGold is quite geared to the gold price because it is a higher cost producer. But it’s not on its own. All of the gold sector is getting smashed globally.”

Dual-listed companies that also trade on the ASX were among decliners as investors in that market reacted to weaker-than-expected figures from China, Australia’s biggest export market.

Fletcher Building fell 1.4 percent to $8.45 and SkyCity Entertainment Group was down 2.1 percent to $4.21

Summerset Group rose 1.8 percent to $2.89 and was the biggest gainer on the NZX a day after saying it had completed due diligence on a 3.3 hectare site in Lower Hutt that will be the company’s 20th the retirement village. The land is being acquired, subject to approvals, from the Boulcott’s Farm Heritage Golf Club.

“Overlooking the golf course and close to essential amenities, we regard Summerset’s new Lower Hutt site as its most attractive to date,” said James Schofield, vice president, equity research at First NZ Capital.

Fisher & Paykel Healthcare, which gets more than 50 percent of revenue in US dollars, gained 1.6 percent to $2.52 as the kiwi dollar retreated from recent highs.

Cavalier, the carpet maker, led a decline in manufacturers. Nuplex Industries was down 0.6 percent to $3.24 and Skellerup Holdings fell 2.1 percent to $1.41.

Port of Tauranga, the nation’s busiest export port, set a new record, rising 0.5 percent to $14.80. Auckland International Airport gained 0.7 percent to $2.92.

Precinct Properties New Zealand rose 0.9 percent to $1.07, leading gains in property stocks that are typically held for their yield certainty. Goodman Property rose 0.9 percent to $1.11 and Kiwi Income Property rose 0.4 percent to $1.20.

(BusinessDesk)

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