NZ shares join global selloff

  • 09/02/2016

By Sophie Boot

New Zealand shares fell after the long weekend, catching up on a global selloff amid concerns global growth may be faltering. Xero and Orion Health Group were among decliners, while Coats Group rose.

The S&P/NZX 50 Index fell 82.5 points, or 1.3 percent, to 6071.31. Within the index, 41 stocks fell, five were unchanged and four rose. Turnover was $178 million.

The local bourse had negative leads from offshore, with Wall Street closing lower last night and Asian markets mainly declining. The S&P/ASX 200 Index was down 2.9 percent at 5:30 local time, while the Nikkei 225 Index dropped 5.2 percent and the Chinese large-cap CSI 300 Index down 0.7 percent.

"Obviously we've had a little bit of catching up to do with Monday being a public holiday," said Grant Williamson, director at Hamilton Hindin Greene. "We opened up this morning with some quiet selling, but that has accelerated this afternoon as Australia has lost some pretty reasonable ground."

Xero fell 7.1 percent to $15.10, a four-month low, while Orion Health Group shed 5 percent to $2.85.

ANZ dropped 5 percent to $24.44 and Westpac fell 4 percent to $30.93. Both stocks are dual-listed on the ASX, and were hit hard with Australia continuing the theme seen on Wall Street, where financials led the slide, Williamson said.

Skellerup Holdings dropped 3.5 percent to $1.39, Sky TV shed $3.30 to $4.40, and Kathmandu Holdings fell 3.2 percent to $1.51.

Fletcher Building fell 3 percent to $6.88, NZX dropped 2.9 percent to $1.02, and Fisher & Paykel Healthcare dropped 2.7 percent to $8.45.

Coats Group was up 1 percent to 48.5 cents.

Trustpower gained 0.7 percent to $7.65, and Steel & Tube Holdings rose 0.5 percent to $2.13.

NZAX-listed shell company RIS Group was unchanged at 0.4 of a cent. An independent adviser's report has given the thumbs up to a proposed backdoor listing of a company owned by Wellington property developers and brothel owners John and Michael Chow despite existing shareholders of RIS Group being heavily diluted and debt increasing substantially.