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NZ shares drop in wide-ranging selloff

NZ NewswireNZ Newswire 14/06/2016 Jonathan Underhill
Summerset Group, Air New Zealand and Xero led the decline while Spark New Zealand gained. © AAP Summerset Group, Air New Zealand and Xero led the decline while Spark New Zealand gained.

New Zealand shares fell as fears around the potential for Britain to exit the European Union continued to erode risk appetite. Summerset Group, Air New Zealand and Xero led the decline while Spark New Zealand gained.

The S&P/NZX50 Index fell 89.32 points, or 1.3 per cent, to 6834.95. Within the index, 41 stocks fell, four rose and five were unchanged. Turnover was a modest $153 million.

Equity markets sold off for a second day in Asia, with Japan's Nikkei 225 Index falling 1.5 per cent and Australia's S&P/ASX 200 Index declining 1.9 per cent as that market played catch up after a public holiday on Monday.

"There's a flight to safety - gold is up as well," said Greg Smith, head of research at Fat Prophets. "We might be in for a choppy next few weeks."

Summerset dropped 5.5 per cent to $4.30. Among other listed retirement village operators, Ryman Healthcare fell 1.8 per cent to $9.29 and Metlifecare fell 1.8 per cent to $5.60. Air New Zealand fell 4.4 per cent to $2.08 and Xero declined 3.9 per cent to $18.55. Coats Group fell 3.6 per cent to 53 cents and Orion Health Group fell 3.2 per cent to $4.60.

Spark rose 2.4 per cent to $3.405.

"Spark is one of the highest yielding stocks in the market and the reality is we still remain in a low interest rate environment," Smith said. After its recent selloff, the stock had a yield of 7.5 per cent, he said.

Sky TV fell 1.4 per cent to $4.93. Meridian Energy fell 1.5 per cent to $2.56 and Trade Me Group fell 1.5 per cent to $4.54.

TruScreen fell 5.6 per cent to 25.5 cents after the NZAX-listed cervical cancer test developer widened its annual loss as revenue dropped 21 per cent because of delays in getting a new device certified.

BurgerFuel Worldwide fell 8.1 per cent to $1.70 after the NZAX-listed fast food chain franchisor said it may ditch its plans to enter the US market and is uncertain of support from backer Franchise Brands.

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