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NZ shares fall as Chorus and F&P; dip

NZ Newswire logoNZ Newswire 30/01/2017 Sophie Boot

New Zealand shares dropped, led by Chorus and Fisher & Paykel Healthcare on continued Trump concerns, while Heartland Bank and Air New Zealand rose.

The S&P/NZX 50 Index fell 48.7 points, or 0.7 per cent, to 7,085.56. Within the index, 27 stocks dropped, 12 were unchanged and 11 rose. Turnover was $70 million.

"We are very slow today, there's no catalyst at the moment to drive anything," said Craigs Investment Partners' Peter McIntyre. "The market's grinding to a standstill today, until we get some decent corporate news flow - it's not surprising when you have Auckland anniversary that volumes are so light."

Chorus led the index lower, dropping 3.7 per cent to $4.07. It has been awarded contracts to extend the nationwide ultrafast fibre network to 151 extra towns and said it will extend UFB to a further 169 regions, adding more than 200,000 households and businesses to its network.

"I think there are doubts in the market that it's going to have a negative impact on their copper network, which is still quite a good earner for them. Some analysts still have a bit of doubt whether that's going to be good in the long run," McIntyre said.

Fisher & Paykel Healthcare dropped 1.9 per cent to $8.70, extending its losses from last week after US President Donald Trump announced his plan to impose a 20 per cent import tariff on Mexican goods to pay for the wall he wants to build. Fisher & Paykel manufactures goods for the American market in the Mexican town of Tijuana.

"Again it's concern about what's happening with regards to the state of play with imports into the US from Mexico. It's had a good run over the past three or four years, so some investors are taking some money off the top, admittedly on low volumes," McIntyre said.

Heartland Bank was the best performer, up 1.3 per cent to $1.56, while Air New Zealand gained 1.2 per cent to $2.16.

Outside the benchmark index, Hellaby Holdings was unchanged at $3.58. ASX-listed auto firm Bapcor edged closer to its takeover of Hellaby, lifting its holding to just below the 90 per cent level that will allow it to compulsorily acquire the remaining shares.

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