Stockmarket drop snaps 7-day rally
New Zealand shares fell, snapping a seven-day rally, as Air New Zealand was sold after recent gains and investors sold property companies such as Property for Industry, Goodman Property Trust and Kiwi Property Group on the view that rising interest rates makes their dividend yield less appealing.
The S&P/NZX 50 Index fell 16.65 points, or 0.2 per cent, to 7405.84. Within the index, 28 stocks fell, 16 gained and six were unchanged. Turnover was $261 million.
fell 3.5 per cent to $2.60, having climbed almost 6 per cent in the past two days after the national airline said it had tapped former Prime Minister John Key to join its board starting in September.
“We’ve seen some profit-taking in Air New Zealand. Investors love the idea that the ex-PM is joining the board,” said Grant Williamson, a director at Hamilton Hindin Greene. “But one board member won’t make a huge difference in the short term.”
fell 2.5 per cent to $1.595, leading a clutch of
Air New Zealand Property for Industry
per cent to $1.40.
Goodman
property stocks lower. fell 2 per cent to $1.20 and declined 1.4
Property Kiwi Property Group
Vital Healthcare Property Trust Precinct Properties
shed 1.4 per cent to $2.20, declined 1.2 per cent to $1.205 and fell about 1 per cent to $1.
Property Argosy Investore Property Stride Property Healthcare Summerset
was down 0.8 per cent to $1.31 and fell 0.6 per cent to $1.73.
“We’ve seen selling in the property stocks today as we did three or four weeks ago,” Williamson said. “There’s some large holders looking to make changes — some investors looking at the fundamentals: interest rates tracking up and what that means for yield stocks. Not quite so much demand.”
While further selling was possible, there was “still a very good differential between interest rates and dividend yields”, he said.
Among other stocks sensitive to perceptions in the property market, retirement village operator
fell 1.6 per cent to $8.65,
Group Ryman Holdings
dropped 1.4 per cent to $5.10 and fell 1.2 per cent to $5.69.
fell 3.7 per cent to $3.66. Its proposed merger with Vodafone New Zealand has been shot down by the Commerce Commission and yesterday the regulator rejected a similar proposal from media companies NZME and Fairfax
Metlifecare Sky Network Television
Media to merge their New Zealand operations.
fell 11 per cent to 79c while on the ASX, was down A1c at A$1.07.
NZME Fairfax ANZ Banking Group
fell 3.5 per cent to $33.86, tracking its ASX-listed shares lower after the company reported first-half results on Tuesday.
was unchanged at $8.48, with about $47 million of stock changing hands.
Among gainers on the index yesterday, extended its rally, rising about 3 per cent to $3.46 and its supplier, jumped 4.7 per cent to $3.98.
“The Chinese have really taken a shine to A2’s baby formula. They can’t get enough of it,” Williamson said, adding that A2 was preparing to announce its dividend policy. rose 2.1 per cent to
gained 1.7 per
Fletcher Building A2 Milk Synlait Milk, Scales Corp Z Energy New Zealand Refining
$3.40 and cent to $7.73. rose 0.9 per cent to $2.35.
Fonterra Shareholders’ Fund
rose 0.3 per cent to $5.92 after prices rose in the latest GlobalDairyTrade auction.