Shares slide as Tiwai threat haunts generators

New Zealand shares fell as investors continued to assess the impact of Rio Tinto’s threat to close the Tiwai Point smelter. However, property stocks had a strong day, led by Vital Healthcare Property Trust.

The S&P/NZX50 index declined 26.13 points, or 0.2 per cent, to 10,761.69. Within the index, 29 stocks fell, 15 rose and six were unchanged. Turnover was $117.2 million.

Vital Healthcare Property Trust led property stocks higher, lifting by 1.5 per cent to $2.70, as 200,000 shares changed hands. Ryman Healthcare rose by 1.4 per cent to $13.09 while Argosy Property lifted 1.5 per cent to $2.70 and Precinct Properties New Zealand gained 1.4 per cent to $1.85. Kiwi Property Group was unchanged at $1.59 having raised $180 million at $1.58 per share earlier this week.

“Property has been relatively robust and I suppose that’s the reliable income stream as most are paying a quarterly income,” Craigs

Investment Partners adviser Chris Timms said, adding that retirement village operator Ryman benefited from a respite in the North Island property market especially.

Contact Energy was the worst of the electricity generator-retailer stocks, falling by 2.3 per cent to $7.21. Trustpower was down 1.5 per cent at $8.31, Mercury fell 1.3 per cent to $4.90 and Meridian was down by about 1.7 per cent at $4.52.

Vista Group International was the day’s biggest decliner, falling by 3.1 per cent to $3.78.

Bank stocks also fell, with Australia and New Zealand Banking Group down by 1.7 per cent at $28.30 after it said on Thursday New Zealand net profit fell 8 per cent to $1.83 billion in the 12 months ended September 30. Westpac Banking Group, which reports next week, fell by 0.5 per cent.

Sky Network Television declined by 1.1 per cent and closed at 89c, having lost about half its value so far this year.

Yesterday, the pay-TV operator revealed more detail about the 5 per cent stake it gave NZ Rugby to secure broadcasting rights. Sky issued 21.8 million shares at 92c a share, valuing the stake at $20.07m. The deal also includes a condition that NZ Rugby must give at least 10 working days notice if it wants to sell the shares after the agreed two-year minimum period.

Shares of Kathmandu Holdings dipped

0.3 per cent to $3.13. Shares of Skellerup fell

1.3 per cent to $2.27. Yesterday the rubber goods maker announced it bought UK-based Silclear for £3.3m ($6.7m) in a deal that it said would immediately add to earnings.

Scott Technologies rose by 3.4 per cent to $2.45. This week the Government announced the Dunedin-based company will receive a $5.8m loan from the Provincial Growth Fund to set up an agriculture technology business unit.