MARKET CLOSE: NZ stocks follow global markets lower

MARKET CLOSE: NZ stocks follow global markets lower, led by Restaurant Brands

By Jason Krupp

Jan. 14 (BusinessDesk) - New Zealand stocks fell for the first time this week, following global markets lower as a bigger-than-forecast increase in U.S. jobless claims cooled investors' appetite for higher-yielding, or riskier, assets. Restaurant Brands NZ Ltd. paced decliners on the exchange while Skellerup Holdings rose.

The NZX 50 Index fell 3.81 points, or 0.1%, to 3369.89. Within the index, 16 stocks fell, 17 rose, and 17 were unchanged. Turnover was $52.7 million.

Global equities retreated overnight after the number of people applying for unemployment aid in the U.S. unexpectedly climbed by 35,000 to 445,000, its highest level since late October.

"Following the positive performance and good close yesterday, today has to be disappointment in most investors' eyes," said Grant Williamson, a director at Hamilton Hindin Greene. "The stocks that have come off have been the blue chips that led the rally yesterday."

Restaurant Brands, the fast food franchise operator, fell 1.9% to $2.62. The company was one of the best performers on the exchange last year, with the share price gaining 64.2% in the past 12-months.

Dual-listed Telstra Corp., Australia’s biggest phone company, fell 1.9% to $3.68, SkyCity Entertainment Group, the casino and hotel operator, fell 1.5% to $3.28, and Telecom Corp., New Zealand's biggest telephone company, fell 0.4% to $2.29.

Goodman Fielder Ltd., the food ingredient manufacturer, fell 1.1% to $1.73. The company said today its manufacturing facilities in Queensland had not been affected by the flooding, with full-scale production expected to resume shortly.

Xero Ltd., the online accounting software provider, fell 8.9% to $2.55, having traded as high as $3.15 as recently as Dec. 31.

Skellerup, the rubber goods and milking products manufacturer, rose 4.4% to $1.20, pacing gainers on the NZX 50. The company was the best performer on the exchange last year, having jumped almost 150% in 12-months.

Warehouse Group, New Zealand's biggest listed retailer, rose 0.6% to $3.54, after the company played down speculation chief executive and managing director Ian Morrice would be stepping down over the retailers’ weak performance. The Auckland-based company cut its forecast first-half profit to a range of between $51 million to $54 million in the six-months ended January 30, compared to the $57 million reported in the same period a year ago, following weaker sales over the key Christmas retailer period.

Charlie’s Group, which manufactures Charlie’s juice and Phoenix Organic soft-drinks, rose 6.2% to 19 cents after supermarket Coles extended the company's products across its 750 Australian stores. Chief executive Stefan Lepionka said the company he founded with entertainer Marc Ellis and Simon Neal has extended the range of products sold through Coles by 60%, building on the breakthrough trial agreed in October last year.

"It does appear to be a small cap stock on a growth path," Williamson said.

NZX Ltd., the securities market operator, rose 0.6% to $1.63 after it announced that it was winding up operations of AXE ECN, an electronic trading platform that was to have launched in Australia as an alternative the ASX.

Shareholders, which include Citigroup, Macquarie, Merrill Lynch, Goldman Sachs and Commonwealth Bank, said they did not "see opportunities for its business model to generate sustainable economic returns" after the company failed to gain regulatory approval – a failure that NZX chief executive Mark Weldon previously labeled a politically motivated effort to protect the ASX in its home market.

(BusinessDesk)

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