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Local stocks falls on subdued trading day

NZ NewswireNZ Newswire 21/06/2016 Sophie Boot
© Getty Images

New Zealand shares dropped, defying global trends, as a lack of news and Brexit nervousness kept the market quiet. Tegel Group and Vital Healthcare Property Trust declined while A2 Milk rose.

The S&P/NZX 50 Index fell 30.15 points, or 0.4 per cent, to 6,839.39. Within the index, 24 stocks rose, 20 fell and six were unchanged. Turnover was $144 million.

"The market's fall is unusual because there was an almighty rally overnight from the international markets, in particular the UK and Europe, and a material rally out of the US - we're bucking the trend by being in the red," said Mark Lister, head of private wealth research at Craigs Investment Partners.

"We haven't suffered the way markets like Europe or the UK have over the last several days, so we haven't participated in the rebound."

That rebound was due to Brexit fears easing overnight. Local market participants have been happy to bide their time due to the uncertainty ahead of Friday morning's vote (NZ time), combined with a dearth of stock-specific news, Lister said.

"The Brexit vote is keeping people nervous and keeping markets volatile, and it's going to be close from everything we can see," Lister said.

Tegel Group fell 0.6 per cent to $1.67. The poultry group, which was taken public by private equity firm Affinity Equity Partners in April, reported annual sales and profit ahead of its prospectus forecasts and said it was on track to achieve its targets for the current year.

Vital Healthcare Property Trust was the worst performer, down 4.1 per cent to $2.13.

Spark shed 2.9 per cent to $3.38, Kathmandu Holdings fell 2.1 per cent to $1.39, and Ebos Group dropped 1.5 per cent to $16.05.

A2 Milk gained 2.3 per cent to $1.81.

Orion Health gained 1.7 per cent to $4.89. The health software developer said it has signed an agreement with Minnesota state-certified health information organisation (HIO) Koble-MN to use its Amadeus precision medicine platform for an undisclosed amount.

Westpac gained 1.8 per cent to $31.19 and Comvita rose 1.7 per cent to $12.30.

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