NZ shares slip from record as Z Energy falls

New Zealand shares fell from a record as investors took advantage of the recent gains. Z Energy dropped on an unusually large volume of trading.

The S&P/NZX 50 index declined 27.91 points, or 0.3 per cent, to 10,058. Within the index, 29 stocks fell, 16 rose, and five were unchanged. Turnover was $279.4 million, of which Z Energy accounted for $203.7m.

The benchmark index was at a record on Thursday and has been one of the more expensive across the Asia-Pacific region. Port of Tauranga, which is trading at a price-toearnings ratio of 43 times, led the decline, falling 3.4 per cent to $5.90 on a volume of

125,000 shares. NZX fell 2.8 per cent to $1.04, while Tourism Holdings was down

2.2 per cent at $3.93.

“We gave some of those gains back,” said Grant Williamson, a director at Hamilton Hindin Greene. “Profit-takers have come back into the market.”

The benchmark index was reweighted on Thursday when Trade Me was suspended pending the finalisation of its $2.56 billion takeover by UK private equity firm Apax Partners. Oceania Healthcare joined the index, and was down 1.8 per cent at $1.08 on a volume of 1.3 million shares.

Williamson said investors were looking to reinvest that money, with low interest rates continuing to support the equity market.

“People are really struggling to find a place to park their money,” he said.

Z Energy dropped 2.8 per cent to $6.19, with 33.5 million shares changing hands. The transport fuels company on Thursday reported a 13 per cent decline in annual earnings, but its signal for higher dividend payments had been well-received.

Among other companies trading on volumes of more than a million shares,

Spark New Zealand fell 0.5 per cent to $3.67, Contact Energy rose 0.2 per cent to $6.79, Kiwi Property Group decreased 1.6 per cent to $1.52, Goodman Property Trust was unchanged at $1.72, and Meridian Energy rose 2 per cent to $4.17.

Skellerup Holdings posted the biggest gain, up 2.3 per cent at $2.26.

Outside the benchmark index, Moa Group rose 5.3 per cent to 40c. The boutique beer maker and hospitality group operator on Thursday said it narrowed its second-half loss and was on track to breaking even. New Zealand King Salmon Investments dropped 6.9 per cent to $2.28, extending its decline after Wednesday’s downgraded earnings outlook.