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NZ shares start week on negative note

NZ Newswire logoNZ Newswire 10/10/2016 Sophie Boot
© Ross Setford/Bloomberg News

New Zealand shares dropped for the fifth consecutive session to a near-three-month low, led down by Auckland International Airport, Ryman Healthcare and Chorus.

The S&P/NZX50 Index fell 50.88 points, or 0.7 per cent, to 7,116.93. Within the index, 34 stocks dropped, 12 rose and four were unchanged. Turnover was $NZ109 million.

"The downtrend in the New Zealand market is all about the yield play, it's the perception of higher interest rates in the US that's shifted money away from our quasi-bond yielding stocks," said Daniel Metcalfe, senior investment adviser at OMF.

"There's some profit-taking after what's been a very good 12 months for New Zealand equities."

Auckland International Airport was the worst performer on the index on Monday, down 3.3 per cent to $NZ6.72, and has declined 21 per cent this year.

Ryman Healthcare dropped 2.5 per cent to $NZ8.95 and Chorus fell 2.4 per cent to $NZ3.67.

TradeMe declined 0.9 per cent to $NZ5.33, a two-month low. Founder Sam Morgan announced he intends to leave the board within the next year but will remain a shareholder.

Metcalfe said the stock's "fairly aggressive selldown" over the past week was attributable to competition in the form of Facebook's Marketplace, the social media giant's own online classifieds option.

Heartland Bank was the best performer, up 2 per cent to $NZ1.53, while Tower gained 1.7 per cent to 92.5 NZ cents and Meridian Energy rose 1.4 per cent to $NZ2.625.

Outside the benchmark index, Michael Hill International gained 1.2 per cent to $NZ1.75.

The jewellery chain business founded by its namesake delivered 6.8 per cent sales growth in the three months to Sept. 30 as it gears up for the busy Christmas period.

Hellaby Holdings rose 0.3 per cent to $NX3.34. ASX-listed Bapcor's $NZ322.5 million takeover bid for the company has delayed its plans to freshen up its boardroom, chairman Steven Smith told shareholders at its annual meeting in Auckland.

The offer price is $NZ3.30 per share, though Bapcor chief Darryl Abotomey hasn't ruled out lifting the bid.

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