You are using an older browser version. Please use a supported version for the best MSN experience.

NZ shares drop as sellers emerge

NZ NewswireNZ Newswire 28/10/2016 Sophie Boot

Shares drop with TradeMe and A2 Milk down © Brendon Thorne/Bloomberg Shares drop with TradeMe and A2 Milk down New Zealand shares fell, led by Trade Me Group while Summerset Group gained on its positive earnings outlook.

The S&P/NZX50 Index dropped 13.31 points, or 0.2 per cent, to 6,928.64. Within the index, 18 shares rose, 17 fell and 16 were unchanged. Turnover was $124.7 million.

"There still seems to be a weight of selling in the marketplace, after the past three or four-odd weeks of experiencing some downside," Grant Williamson, director at Hamilton Hindin Greene, said.

"It will be interesting to see next week whether the start of a new month turns things around."

Trade Me Group led the index lower, down 3.4 per cent to $4.88, and has dropped almost 17 per cent since its record high of $5.86 reached at the beginning of September.

"It has been trending downwards for a while now, it doesn't seem to be the market darling like it once was," Mr Williamson said. "Investors are concerned about where growth is going to come from, whether it's reached saturation point."

A2 Milk Co fell 3 per cent to $1.92, Stride Property dropped 2.1 per cent to $1.85, and Australia & New Zealand Banking Group fell 2 per cent to $29.40.

Scales Corp was the best performer, up 3.7 per cent to $3.10, while Metlifecare rose 3.2 per cent to $5.79.

Summerset Group gained 2.3 per cent to $4.86. The retirement village company says earnings will rise by as much as 46 per cent this year as it benefits from strong sales in a nation with an ageing population.

"Other stocks in that sector are higher as well, they've been going through some weakness but have had a bit of a bounce today on that guidance, they're being buoyed by that news."

Outside the benchmark index, Intueri Education Group gained 35.6 per cent to 8 cents. It lowered its 2016 earnings guidance, saying deeper cost cuts and the decision to sell its dive school aren't enough to offset weaker enrolments and one-time restructuring costs.

AWF Madison Group rose 3.8 per cent to $2.44. The country's largest contract labour company lifted first-half profit 15 per cent.

OceanaGold Corp dropped 2.3 per cent to $4.24. The gold miner's third-quarter profit soared as it expanded its operations and didn't have a repeat of the previous year's impact from the shutdown of the Didipio mine for maintenance.

image beaconimage beaconimage beacon