MARKET CLOSE: NZ shares drop, joining Asian market slide, led by Kathmandu, Xero, Fletcher
By Suze Metherell
Jan. 24 (BusinessDesk) – New Zealand shares fell as Asian markets declined for a second day amidst on going concern
about a weakening Chinese economy and instability in emerging markets. Kathmandu Holdings, Xero and Fletcher Building
paced the decline.
The NZX 50 Index dropped 37.378 points, or about 0.8 percent to 4873.698. Within the index 27 stock fell, 13 rose and 10
remain unchanged. Turnover was $115.6 million.
Across the region markets retreated after Argentina devalued its currency overnight and Turkey’s central bank intervened
in the Lira, causing investors to shy away from risk-sensitive markets, like New Zealand’s. Asian markets also continued
to worry about yesterday’s data suggesting an economic slowdown in China.
Australia’s S/ASX 200 Index was down 0.2 percent in afternoon trading, while Hong Kong’s Hang Seng Index slipped 0.6 percent and
Japan’s Nikkei 225 Index was down about 1.7 percent.
“Everything is coming off a little bit, it’s certainly not surprising given weakness offshore,” said Grant Williamson, a
director at Hamilton Hindin Greene. “Really it’s just us playing follow the leader with the Asian markets.”
New Zealand’s biggest listed company Fletcher Building was down 2.7 percent to $8.88, as investors saw the chance to
take a bit of profit after the “stock’s rally in the past few days and weeks,” Williamson said.
Outdoor equipment chain Kathmandu Holdings fell 3.3 percent to $3.19, its lowest share price in over a month. Fellow
retailer Hallenstein Glasson dropped 1.5 percent, to $3.30. Warehouse Group, New Zealand’s biggest listed retailer which
yesterday issued a profit warning, increased 0.3 percent to $3.55.
Wellington-based accounting software company Xero fell 1.9 percent to $41.80. Other tech stock also slipped away as
investors again took the opportunity to take profit from these stocks which have rallied significantly since the start
of the year, Williamson said. Security software specialists Wynyard Group fell 3.1 percent to $2.84, and SLI Systems,
which make retail website search engines, dropped 2.3 percent to $2.59.
Telecom fell 1.1 percent to $2.365, while Skycity Entertainment Group declined 0.3 percent to $3.83.
Of the day’s few gainers Lines company Vector rallied on news it had increased electricity and gas customers over six
month period ending December. It was up 2.4 percent to $2.58. Auckland International Airport was up 0.3 percent to
$3.63.The national carrier, Air New Zealand, also gained 0.9 percent to $1.72.
OceanaGold led gainers, rising 10 percent to $2.22 after the gold price rallied yesterday amid concerns over emerging
markets.
(BusinessDesk)