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Global markets lead local shares lower

NZ Newswire logoNZ Newswire 13/01/2017 Sophie Boot

ANZ was one of the worst performers as New Zealand shares fell, led lower by global markets. © Sandra Mu/Getty Images ANZ was one of the worst performers as New Zealand shares fell, led lower by global markets. New Zealand shares fell, led lower by global markets, with ANZ and A2 Milk Co down while Vital Healthcare Property Trust gained.

The S&P/NZX50 Index dropped 26.82 points, or 0.4 per cent, to 7,036.77. Within the index, 21 stocks fell, 17 rose and 12 were unchanged. Turnover was $101.1 million.

"It's looking like a weaker close today, though not as bad as some of the Asian markets, the overnight leads were weaker as well," said Grant Williamson, director at Hamilton Hindin Greene.

"We're very much following that trend, down a wee bit. We've had a reasonable time of it so for this year, volumes are still relatively light but we'll pick up next week as a number of institutions come back on board."

At 5pm local time, Australia S&P/ASX 200 was down 0.9 per cent, while overnight the US S&P 500 dropped 0.2 per cent and the Dow Jones Index fell 0.3 per cent.

ANZ Bank was the worst performer, down 2.3 per cent to $32.15, and Westpac fell 2.2 per cent to $34.50.

A2 Milk declined 1.8 per cent to $2.22. The shares gained 7 per cent on Wednesday after A2's ASX-listed rival Bellamy's issued a profit warning, but have dropped back since.

Williamson said the market was starting to come under a bit of profit taking pressure this afternoon, particularly for stocks which rallied earlier in the week such as Meridian Energy, which fell 1.5 per cent to $2.67 and Fletcher Building, which dropped 1 per cent to $10.30.

While local news is thin on the ground, stock market trading volumes have been lower with many New Zealanders still on holiday. However, the inauguration of US president-elect Donald Trump next week could stir things up, Williamson said.

"It might make investors a little bit nervous, I don't think anyone knows what to expect. You wouldn't expect him to be making major calls early, but who knows with that man?" Williamson said.

Vital Healthcare Property Trust was the best performer on the index, up 1.5 per cent to $2.09, while Sky TV rose 1.3 per cent to $4.56 and Mercury New Zealand gained 1.3 per cent to $3.06.

Outside the benchmark index, Hellaby Holdings rose 0.6 per cent to $3.57.

Veritas Investments was unchanged at 20 cents.

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