Shares slide as foreigners take profits
Market still underpinned by solid fundamentals, says expert Aussie gets boost
New Zealand shares fell more than 1 per cent as foreign investors sold back their stakes, with A2 Milk Co and Meridian Energy hit hardest. The S&P/NZX 50 Index dropped 114.46 points, or 1.4 per cent, to 8,250.44. Within the index, 36 stocks fell, 10 were unchanged and just four rose. Turnover was $131.7 million.
“The market has certainly had a change of direction. Stocks held largely by foreign investors have come under pressure and there are not a lot of buyers in the marketplace at the moment, so when you have a number of investors wanting to get out it certainly puts pressure on pricing,” said Grant Williamson, investment advisor at Hamilton Hindin Greene.
“It does look like foreign investors are taking profits, the Kiwi dollar has helped them recently by strengthen- ing. The market is still underpinned by solid fundamentals. We’ve had such a good run, we have been overdue for somewhat of a correction, but I don’t see it lasting too long.”
Blue chip stocks like Fletcher Building, Meridian Energy, and Ryman have dropped on the back of this selling, Williamson said.
was the secondworst performer on the index, falling 2.7 per cent to $2.90, with down 2.1 per cent to $10.94 and falling 1.3 per cent to $7.61.
the biggest gainer last year as its share price soared on optimism about the Chinese appetite for its baby formula, was the worst performer, down 4.4 per cent to $7.74.
was the best performer, up 1.4 per cent to $5.03, while gained 1.2 per cent to $6.60 and
rose 1.2 percent to $5.97.
Meridian Energy Fletcher A2 Milk Co, Port of Tauranga Trustpower Ryman Fonterra Shareholders Fund
Outside the benchmark index,
dropped 2.4 per cent to $2.06. It expects first-half adjusted earnings from continuing operations to fall 22-to-28 per cent as it keeps investing to transform the business.
The Auckland-based company said first-half adjusted net profit from continuing operations will probably be $32m to $35m, which “includes a significant accrual for a redesigned incentive programme, intended to reward better than expected financial performance along with reinforcing specific behaviours necessary to execute the transformation”.
Williamson said: “It was nothing to get excited about, the company still seems to be struggling somewhat.”
was unchanged at 71c. OG Oil & Gas has declared its partial takeover for NZOG unconditional.
Warehouse Group New Zealand Oil & Gas
The NZ dollar fell against the Australian dollar after stronger-thanexpected November retail sales across the Tasman added to the view that consumer spending is picking up and fuelling growth. The kiwi fell to A91.37c as at 5pm yesterday from A91.64c at 8am and A91.49c on Wednesday. It rose to US71.88c from US71.64c on Wednesday, having climbed as high as US72.28c overnight. The kiwi rose to 4.6838 Chinese yuan from 4.6713 yuan on Wednesday. It traded at Japanese ¥80.29 from ¥80.43. The NZ dollar was at €.6014c from €.5997c and rose to 53.22p from 52.92p.