Stocks swamped by global bears - Stuff Stocks swamped by global bears - Stuff

Thursday, May 17, 2012

Stocks swamped by global bears - Stuff

Stocks swamped by global bears - Stuff


New Zealand shares moved deeper in to the red with fears over Europe's worsening sovereign debt crisis dousing investor appetite for higher yielding or riskier assets.

Goodman Fielder led decliners and OceanaGold rose.

The NZX 50 Index fell 15.19 points, or 0.43 per cent, to 3506.31 as of noon.

The Zealand dollar recently traded at US76.32 cents, down from US76.40c at 8am and US76.71 at 5pm yesterday.

The local bourse, although down, outperformed Australia's S&P/ASX 200 Index, which opened 1.8 per cent lower at 4082.4.

Goodman Fielder, the Australian food producer fell 3.7 per cent to 79c. The company said earlier this month that it expects earnings to fall 15 to 20 per cent this year despite predictions of improved volumes, prices and market share.

Jitters over Europe and its banking sector, particularly in Spain where Moody's Investor Service has threatened to downgrade 21 institutions, saw investors trim their exposure to financial stocks.

Westpac, the Australian lender, fell 1.8 per cent to $27 on the NZX. AMP, the wealth manager, fell 1.8 per cent to $5.014.

ANZ, New Zealand's biggest lender, fell 1.3 per cent to $27.40. Tower, the insurer controlled by Guinness Peat Group, fell 1.2 per cent to $1.62.

Telecom fell 1.2 per cent to $2.52.

SkyCity Entertainment, the casino and hotel operator, fell 1.1 per cent to $3.52, with stock continuing to track lower after its profit warning last week.

At the time the company said it expected full year earnings to come in at around the low $140 million mark, down from the mid $140m level due to ongoing weakness at its Adelaide gambling venue.

Guinness Peat Group, the investment holding company looking to wind itself down, fell 1 per cent to 48c. The company today announced that it disposed of 11 investments so far this year.

Fletcher Building fell 0.8 per cent to $6.27.

OceanaGold, the operator of the Macraes and Reefton goldfields, rose 5.7 per cent to $2.40, tracking in line with gains in the gold price as investor hunted for volatility resistant assets.

The precious metal recently traded at US$1574.80 an ounce, up from a multi-month low of US$1538.05 seen earlier in the week.
Rakon, the electronics component maker, rose 2 per cent to 50c. The bounce appeared to be due to investors betting that yesterday's sharp decline, seen in the wake the company reporting its second earnings loss in three years, was overdone.

Tapware maker Methven rose 3.5 per cent to $1.19 after reporting a full-year net profit of $6.5m, up from $4.7m previously, and in line with guidance.

Fisher & Paykel Appliances rose 1.8 per cent to 56c, with the sharp decline in the kiwi boosting the appeal of the whiteware maker's stock.

- © Fairfax NZ News

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