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Terrorism, UK election weigh on NZ market

NZ Newswire logoNZ Newswire 6/06/2017 Sophie Boot

New Zealand shares fell on Tuesday, led lower by dual-listed banks and Sky Network Television, while Air New Zealand extended last week's gains.

The S&P/NZX50 index dropped 5 points, or 0.067 per cent, to 7494.97. Within the index, 24 stocks fell, 22 rose and four were unchanged. Turnover was $184 million.

Market participants are a bit anxious about ongoing terrorist attacks and global political events such as the upcoming UK general election, said Shane Solly, director, portfolio manager and research analyst at Harbour Asset Management.

"We are seeing more of these investors wanting to buy higher certainty stocks," Mr Solly said.

"Z Energy and Genesis Energy are companies that have got a degree of yield and income, which makes them attractive especially as interest rates stay low."

Z Energy rose 1.2 per cent to $7.70 while Genesis Energy gained 0.9 per cent to $2.37.

Sky Network Television was the worst performer, down 3.6 per cent to $3.50. A2 Milk Co dropped 2.6 per cent to $3.38 and SkyCity Entertainment Group declined 2.4 per cent to $4.39.

ANZ dropped 3 per cent to $28.70 and Westpac declined 2.9 per cent to $30.96. The dual-listed banks have become less profitable with credit growth slowing and increased pushback from the government on levies, Mr Solly said.

Air New Zealand was the best performer, up 2.4 per cent to $2.97. The national carrier said its gas turbines business has won four contracts worth up to US$42 million to service and overhaul gas turbines that power much of the US Navy's fleet.

Xero gained 2.4 per cent to $26.10. The company wants to boost its pool for directors fees 64 per cent to cater for an extra two or three directors.

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