You are using an older browser version. Please use a supported version for the best MSN experience.

NZ shares fall on regulation news

NZ Newswire logoNZ Newswire 10/02/2017 Sophie Boot
Kiwi Property Group declined 1.7 per cent to $1.42, Auckland International Airport fell 1.7 per cent to $6.89, and Mercury New Zealand dropped 1.6 per cent to $3.02. © Shutterstock Kiwi Property Group declined 1.7 per cent to $1.42, Auckland International Airport fell 1.7 per cent to $6.89, and Mercury New Zealand dropped 1.6 per cent to $3.02.

New Zealand shares dropped, led lower by Chorus and Vector on regulation news, while A2 Milk Co and Trilogy gained.

The S&P/NZX 50 Index fell 17.19 points, or 0.2 per cent, to 7,104.44. Within the index, 24 stocks rose, 18 fell and eight were unchanged. Turnover was $133 million.

"Given pretty positive leads offshore it's a little bit disappointing - the market is almost flat today. Maybe investors are just sitting back, waiting to see what happens when reporting season really gets into the swing of things," said James Smalley, director at Hamilton Hindin Greene.

Chorus led the index lower, down 3.6 per cent to $4.215. Communications Minister Simon Bridges on Friday unveiled plans to deregulate the company's copper network where it competes with fibre from 2020. C

"It is a bit of regulatory uncertainty but if anyone's got the experience to deal with that type of scenario, it would be Chorus," Mr Smalley said.

"It had been on a pretty strong run over the past wee while, I'm thinking the announcement has just made a few investors an incentive to take a bit of profit off the top."

Kiwi Property Group declined 1.7 per cent to $1.42, Auckland International Airport fell 1.7 per cent to $6.89, and Mercury New Zealand dropped 1.6 per cent to $3.02.

Vector fell 1.2 per cent to $3.25. The Commerce Commission is proposing to cap regulated sales for gas pipeline firms, including Vector, which it estimates will lower their maximum revenue.

"It's an interesting company, there's a billion shares on issue but the free float is minute - just 250 million - and of that you've got a couple of major institutions," Mr Smalley said.

"It's almost too thinly traded for institutions to really get involved with the stock, you can see that by the volumes that trade each day. It's more for retail investors who perhaps may not have fully realised the import of that announcement."

Air New Zealand dipped 0.2 per cent to $2.095. The government is still negotiating with the national carrier in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers, with Jetstar added to the domestic list.

Sky Network Television was the best performer, up 2.8 per cent to $4.45, while Australia & New Zealand Banking Group gained 2.6 per cent to $31.39.

A2 Milk Co rose 2 per cent to $2.54.

Outside the benchmark index, Trilogy rose 4.4 percent to $2.62. The skincare and home fragrance company said it continues to comply with continuous disclosure rules in response to a query from NZX after its shares fell 22 per cent in a month to Thursday.

image beaconimage beaconimage beacon