MARKET CLOSE: NZ stocks fall; WHS, retailers drop

MARKET CLOSE: NZ stocks fall; Warehouse, retailers decline

By Jason Krupp

Aug 8 (BusinessDesk) – New Zealand stocks fell for the second time in seven sessions, after tepid credit and debit card spending data weighed on Warehouse Group, Pumpkin Patch Ltd., and Hallenstein Glasson Holdings.

The NZX 50 fell 9.39 points, or 0.3%, to 3045.1. Within the index 24 stocks fell, 18 rose and eight were unchanged. Turnover was $74.8 million.

The NZSX Consumer Index edged down 0.2% to 1572.3, after Statistics New Zealand said the value of total electronic card transactions fell a seasonally adjusted 0.2% in July, ending five months of growth.

Hallenstein Glasson, the High Street clothing retailer, fell 1.3% to $3.90, Pumpkin Patch, the children’s clothing retailer, fell 0.6% to $1.72 and the Warehouse, New Zealand’s largest listed retailer, fell 0.6% to $3.51. Kathmandu Holdings, the outdoor clothing retailer, fell 1.2% to $1.67.

“The whole of the consumer sector has been a bit in the doldrums of late, and while the numbers haven’t helped, I don’t think one month’s decline is enough data to is make a call for the rest of the year,” said Alan Moore, who helps manage $600 million for Milford Asset Management Ltd. “The real question which will determine the trend going forward is how consumers will behave as we approach the GST change– will they hold back or buy ahead of time?”

Pacing decliners on the NZX 50, Goodman Fielder, the food ingredient manufacturer, fell 2.5% to $1.59, Mainfreight Ltd., the logistics company, fell 2.1% to $6.58, and crystal-oscillator maker Rakon Ltd. fell 1.8% to $1.09.

Shares in NZ Farming Systems Uruguay Ltd., the South American dairy operator, were unchanged at 55 cents after the company’s board urged investors not to sell their stock pending to Olam International, saying it disagrees with some assertions made by the Singaporean company which is looking to acquire the company at its current market price.

Telecom Corp., New Zealand’s largest phone company, fell 0.5% to 2.07. The company had earlier announced that board member Rod McGeoch will retire from the board after more than nine years.

PGG Wrightson Ltd., the rural services company that has agreement to sell its 11.5% stake in Farming Systems to Olam International, rose 1.8% to 57 cents, pacing gainers on the NZX 50.

Michael Hill International Ltd., the jewellery manufacturer and retail, rose 1.5% to 66 cents, and ING Property Trust, the commercial and retail property investor, rose 1.5% to 69 cents.

(BusinessDesk)

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