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New Zealand stocks slip as heavyweight Telecom Corp. weighs on market

New Zealand stocks slip as heavyweight Telecom Corp. weighs on market

Brushing off positive leads from overseas markets, New Zealand stocks fell Wednesday amid a dearth of corporate news and investor uncertainty about market heavyweight Telecom Corp.
The benchmark NZX-50 index closed down 0.2 percent to 3,593.39.
The market didn't get much support from news that the U.S. stock market had hit a record Tuesday. Brokers say the direction the market heads will still be dependent on local news.
"You've got Dow trading on all time highs, that's setting a positive tone, and oil prices coming back, which is also positive. Those two things are themes the market can trade off and we will take our lead from offshore to a certain extent" Thursday, said ABN Amro adviser Matt Willis.
"There's a bit of dearth of news flow out there post-reporting season and that's probably reflected in the volumes going through the market," he said.
Bellwether Telecom drifted off 1.2 percent to NZ$4.27, still trading within a range, as investors readied themselves for its annual general meeting Thursday.
Brokers said the AGM could provide either positive or negative leads on the company's fixed line and broadband strategy, and the impact new telco regulation is having on its business.
Casino operator Sky City fell 1.3 percent to NZ$5.27 after an analyst at Goldman Sachs JB Were suggested the company was too expensive to be bought out by private equity funds based on the price paid for U.S. casino operator Harrah's Entertainment.
This dented a widely held market belief that Sky City is being eyed by larger Australian rivals.
Other loser included Contact Energy, which fell 0.4 percent to NZ$7.01 despite announcing plans for a new LNG terminal in New Plymouth that could help secure its supply of gas.
The big gainer on the index was home appliance maker Fisher & Paykel Appliances, which added 4.7 percent to NZ$3.80, though not on specific company news.


Updated : 2021-05-14 06:27 GMT+08:00