Shares fall on weakened economic data

  • 14/11/2012

New Zealand shares fell, led by carpet-maker Cavalier, Kathmandu and Goodman Property Trust after retail sales data underlined the weak state of the economy in the third quarter.

The NZX 50 Index fell 14.99 points, or 0.4 percent, to 3955.56.

Within the index, 29 stocks fell, 13 rose and eight were unchanged. Turnover was $107 million.

Government figures showed the volume of retail sales fell 0.4 per cent, seasonally adjusted, in the three months ended September 30, against a Reuters survey calling for a 0.5 percent gain.

That adds to the gloom from data last week showing the jobless rate unexpectedly jumped to 7.3 percent, suggesting the economy's pace has hit more than a speed bump.

"There's been a lot of soft market indicators in the last couple of months, and they built to a bit of a crescendo with those unemployment numbers," said Andrew Bascand, managing director at Harbour Asset Management.

Cavalier dropped 3.3 percent to $1.74 and Kathmandu fell 2.9 percent to $1.70.

Goodman Property dropped 2.8 percent to $1.03 after completing a placement of $60 million of new units as part of an $80 million equity-raising to help fund the $186.6 million buy-out of an Auckland business park, Highbrook.

Mr Bascand said the impact of the placement had been muted because the key influence on New Zealand equities remained the fact there is "still a lot of money out there looking for a home".

Jeweller Michael Hill International rose 0.8 per cent to $1.22 and Hallenstein Glasson Holdings rose 0.8 percent to $5.

Fletcher Building, the biggest listed construction company, fell 0.9 percent to $7.34. Nuplex Industries fell 1.4 percent to $2.90.

Xero, the cloud-based accounting service, fell 1.9 percent to $6.24. Chief executive Rod Drury said the company would press on with spending to lift sales though this strategy "will increase losses in the immediate future."

NZN

source: newshub archive