Shares dip in light trade
Biggest news in trading halts
New Zealand shares dipped as heightened global volatility continued to subside, while insurer CBL Corp was suspended pending regulatory investigations and Fletcher Building signalled another profit warning.
The S&P/NZX50 Index fell 17.59 points, or 0.2 per cent, to 8177.14. Within the index, 23 stocks fell, 19 rose and eight were unchanged. Turnover was $109 million.
“The market has calmed down a little bit since Monday, but I don’t know if we’re out of the woods in terms of volatility,” said Grant Davies, investment adviser at Hamilton Hindin Greene. “The New Zealand market was pretty flat [yesterday] and trading lighter. People are being a bit cautious and letting the dust settle.”
The biggest news of the day were two stocks that couldn’t trade: Fletcher Building and CBL.
NZX Regulation suspended CBL because of concerns over its continuous disclosure obligations.
The suspension will continue until NZXR is satisfied that all material information has been released to the market and that the information is complete and accurate, with the regulator unable to confirm how long that will last, it said.
CBL had been in a trading halt at $3.17 since Monday.
Fletcher Building shares were halted at $7.77, pending a review of key projects at its building and interiors (B+I) unit as it prepares its first-half accounts. The company expects to breach its debt covenants because of further “material losses” at its business.
Scales Corp fell 1.9 per cent to $4.61 and Mainfreight was down 1.6 per cent to $25.40.
New Zealand Refining Co was the best performer, up 1.6 per cent to $2.49, with Trade Me Group rising 1.6 per cent to $4.47.
SkyCity Entertainment Group rose 0.8 per cent to $4.03 ahead of reporting its annual result today.
Outside the benchmark index, ERoad declined 6.1 per cent to $3.38. It has opened a share purchase plan for existing shareholders which is larger than initially indicated, following its $15.5 million capital raising last year.
Michael Hill International dropped 7.3 per cent to $1.27.
The jeweller also fell 7.5 per cent to A$1.115 on the ASX.