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NZ shares fall, led by Trade Me

NZ NewswireNZ Newswire 8/07/2016 Jonathan Underhill
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New Zealand shares fell, led by Trade Me Group, as some investors were happy to book profits on a market that has gained 11 per cent this year. Fisher & Paykel Healthcare dropped on concern a strong kiwi dollar will hurt exporters.

The S&P/NZX 50 Index fell 7.42 points, or 0.1 per cent, to 7000.1. Within the index 24 stocks fell, 19 rose and eight were unchanged. Turnover was $183 million.

Trade Me fell 3.8 per cent to $4.81 and Mainfreight, the transport group, declined 2.3 per cent to $16.31. Tegel Group Holdings, the country's largest poultry producer, fell 1.8 per cent to $1.63.

F&P Healthcare, which gets more than 50 per cent of its sales in US dollars, declined 1.5 per cent to $9.98. The kiwi is heading for a 1.2 per cent weekly gain against the greenback and is trading near a 14-month high against the greenback, reducing of exporters' revenue when it is converted back into New Zealand dollars. The kiwi is also at a two-month high against the Australian dollar.

Fletcher Building, which counts Australia as its second-largest market, fell 1.4 per cent to $8.58, even after the Commerce Commission approved its $315 million acquisition of rival construction company Higgins Group Holdings.

"Investors have to be mindful of the fact that some businesses have US and Australian dollar exposure," said James Smalley, a director at Hamilton Hindin Greene. "This high currency is going to affect a number of these exporters' earnings."

Westpac declined 2.8 per cent and ANZ fell 1.2 per cent to $23.98. Standard & Poor's on Thursday put Australia's major lenders on a 'negative' outlook, following a similar downgrade to Australia's sovereign rating outlook.

Ebos Group, which counts Australia as its biggest market, fell 0.9 per cent to $16.01.

Spark was the biggest gainer, rising 3 per cent to $3.76. Sky TV rose 2.7 per cent to $4.88 and Heartland Bank gained 1.6 per cent to $1.25.

Delegat Group rose 2.5 per cent to $6.15 after New Zealand's largest listed wine company revised its forecast net operating profit for the 2016 financial year up $1 million to $37 million on record case sales.

Orion Health Group dropped 1.5 per cent to $4.73 and Warehouse Group fell 1.4 per cent to $2.78.

Blis Technologies stock fell 8.5 per cent to 4.3.

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