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NZ shares fall on Air NZ profit-taking

NZ Newswire logoNZ Newswire 3/05/2017 Jonathan Underhill

New Zealand shares fell on Wednesday, snapping a seven-day rally, as Air New Zealand was sold after recent gains. © Steve Parsons/Press Association New Zealand shares fell on Wednesday, snapping a seven-day rally, as Air New Zealand was sold after recent gains. New Zealand shares fell on Wednesday, snapping a seven-day rally, as Air New Zealand was sold after recent gains.

Investors also sold property companies such as Property for Industry, Goodman Property Trust and Kiwi Property Group on the view that rising interest rates makes their dividend yield less appealing.

The S&P/NZX 50 Index fell 16.65 points, or 0.2 per cent, to 7405.84. Within the index, 28 stocks fell, 16 gained and six were unchanged. Turnover was a larger-than-average $261 million.

Air NZ fell 3.5 per cent to $2.60, having climbed almost 6 per cent in the past two days after the national airline said it had tapped former Prime Minister John Key to join its board in September.

"We've seen some profit-taking in Air New Zealand. Investors love the idea that the ex-PM is joining the board," said Grant Williamson, a director at Hamilton Hindin Greene.

Property for Industry fell 2.5 per cent to $1.595, leading a clutch of property stocks lower.

Goodman Property fell 2 per cent to $1.20 and Kiwi Property Group declined 1.4 per cent to $1.40.

"We've seen selling in the property stocks today as we did three or four weeks ago," Mr. Williamson said.

"There are some large holders looking to make changes - some investors looking at the fundamentals: interest rates tracking up and what that means for yield stocks. Not quite so much demand."

Sky Network Television fell 3.7 per cent to $3.66. Its proposed merger with Vodafone was shot down by the Commerce Commission and on Wednesday the regulator rejected a similar proposal from media companies NZME and Fairfax Media to merge their operations.

NZME tumbled 11 per cent to 79 cents while on the ASX, Fairfax was down 1.6 per cent at A$1.0625.

Among gainers on the index today, a2 Milk extended its rally, rising about 3 per cent to $3.46 and its supplier, Synlait Milk, jumped 4.7 per cent to $3.98.

Fonterra rose 0.3 per cent to $5.92 after prices rose in the latest GlobalDairyTrade auction.

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