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NZ shares fall, led by Stride, Warehouse

NZ Newswire logoNZ Newswire 15/03/2017 Sophie Boot
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New Zealand shares dropped on Wednesday, led by Stride Property and Warehouse Group, while Xero and Chorus rose.

The S&P/NZX50 Index fell 45.79 points, or 0.6 per cent, to 7,131.3. Within the index, 30 stocks declined, 11 rose and nine were unchanged. Turnover was $120 million.

"We're getting some negative leads from offshore, there's some profit taking going on as people look to lock in some gains," said Grant Davies, investment advisor at Hamilton Hindin Greene.

New Zealand Refining, which gave up rights to a 6 cent dividend, was the worst performer, down 4.6 per cent to $2.51. Stride Property fell 2.9 per cent to $1.67 and Sky Network Television dropped 2.9 per cent to $3.69.

Warehouse Group fell 2.5 per cent to $2.39. Last Thursday, the retailer reported a 76 per cent drop in first-half profit after it took an impairment charge against its financial services unit, recognised restructuring costs and earned less from its Red Shed department stores.

"Only a few days ago it reported and it wasn't flash - a downgrade in full-year earnings which is slowly flowing through to the share price," Mr Davies said. "It will also go ex-dividend at the end of the month so it's going to be a rough month."

Xero was the best performer, up 1.8 per cent to $19.32. Chorus gained 1 per cent to $4.10 and Vista Group International rose 0.9 per cent to $5.60.

Vector was unchanged at $3.22. It has expanded out its suite of energy services with the acquisition of E-Co Products Group, better known as home ventilation firm HRV, and solar power firm PowerSmart, both for undisclosed sums.

ANZ Banking Group dipped 0.2 per cent to $34.65 and Westpac fell 1.2 per cent to $37.69. The two banks have entered into enforceable undertakings to change their practices after the Australian regulator found inappropriate conduct in their wholesale foreign exchange businesses, following peers National Australia Bank and Commonwealth Bank.

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