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New Zealand stocks lose ground as Telecom falls, buyer interest wanes

New Zealand stocks lose ground as Telecom falls, buyer interest wanes

The New Zealand share market closed marginally lower Friday, dragged down by heavyweight Telecom whose weakness offset gains in other leading stocks.
The benchmark NZX-50 index lost 3.2 points to 3,592.48.
Brokers said the market failed to follow the positive leads of overseas bourses because of the strength of the local currency. The market appeared to be waiting for corporate takeover activity to pique buyer interest.
"Unless we see some takeover activity it will probably be more of the same next week unfortunately," said Waddell Johnston McCarthy director Ian Waddell.
Telecom fell 1.9 percent to NZ$4.19 as local media reported concerns over regulation and competition, expressed at the company's annual meeting on Thursday.
"There seems to be a lot of articles on Telecom, none of which are positive. It doesn't take much to change sentiment so that's the reason its drifting a bit lower," ABN Amro Craigs broker Bryon Burke said.
Building materials maker Fletcher Building rose 1.3 percent to NZ$8.62 as investors responded positively to new competition in the sector. WJM's Waddell said Fletcher Building looked cheap compared to its Australian rivals and is attractive to investors who want to buy New Zealand blue chips.
Dual-listed bank Westpac gained 0.7 percent to NZ$26.10 while rival ANZ was up 0.3 percent to NZ$30.72.
"New Zealand brokers' focus, with the high currency has been to buy Australian stocks and that's likely to continue," Waddell said.


Updated : 2021-08-04 05:22 GMT+08:00