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NZ shares fall for a 4th straight day

NZ NewswireNZ Newswire 15/09/2016 Sophie Boot

The S&P/NZX50 Index is at its lowest point since July as local shares fell for a fourth straight day, with Steel & Tube Holdings the worst performer. © Hagen Hopkins/Getty Images The S&P/NZX50 Index is at its lowest point since July as local shares fell for a fourth straight day, with Steel & Tube Holdings the worst performer. New Zealand shares fell for a fourth straight day, though losses slowed on Thursday, with Tower, Kiwi Property Group and Investore Property.

The S&P/NZX50 Index dropped 14.48 points, or 0.2 per cent, to 7,196.24. Within the index, 30 stocks fell, 14 gained and six were unchanged. Turnover was $147.5mn.

"The market's a bit softer but it's certainly not as weak as it has been, there's continuation of pressure on some of the larger cap stocks in selling volumes but it's not as big," Shane Solly, director at Harbour Asset Management, said.

"New Zealand's had a massive gain in the stock market, price-to-earnings ratios are at three-decade highs, so our market is very fully priced and we really need strong economic statistics and companies delivering the earnings to support it."

The local index is down 3.6 per cent this week, having lost 2.5 per cent on Monday following a Wall Street selloff driven by comments made by US Federal Reserve officials about the likelihood of a US rate increase, and has continued to drop since. It's now at its lowest point since July 20. The Fed's next meeting is over Sept. 20-21 in Washington.

Steel & Tube Holdings was the worst performer, down 7.5 per cent, or 17 cents, to $2.11. It gave up rights to a 13.5 cent final dividend on Thursday. Freightways, which gave up a 14.5 cent dividend, fell 21 cents to $6.67, while Comvita gained 3.9 cents to $11.15 despite giving up rights to a 2 cent dividend.

Tower dropped 4.2 per cent to $1.02.

Property stocks fell, with Kiwi Property Group shedding 2.6 per cent to $1.49, Investore Property down 1.9 per cent to $1.58, and Argosy Property declining 1.3 per cent to $1.12.

New Zealand Refining Co was the best performer, up 3.7 per cent to $2.26, while Sky TV rose 2.5 per cent to $4.9 and Heartland Bank gained 1.9 per cent to $1.58.

Outside the main index, BurgerFuel Worldwide's NZAX-listed shares rose 0.6 per cent to $1.61. The burger chain franchisor is going ahead with expansion in North America, despite the ending of its deal with Subway franchisor, Franchise Brands.

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