Second day of falls for NZ shares as dollar's slide deters investors

The NZX 50 index fell 15.818 points, or 0.3 per cent, to 5743.995. Photo / File

New Zealand shares fell for a second day as the kiwi dollar's slide to a four-year low sapped overseas investor appetite for high-yielding stocks such as Spark New Zealand and Mighty River Power.

The NZX 50 index fell 15.818 points, or 0.3 per cent, to 5743.995. Prices of 24 index stocks fell, 15 rose and 11 were unchanged. Turnover was $134 million.

The index has retreated from the record high reached two days ago, spurred by investor demand for dividend yields on New Zealand stocks in the face of global low interest rates.

Those overseas investors now face the risk of a continued slide in the kiwi dollar that would erode the value of their holdings.

Spark dropped 1.8 per cent to $3.30 and MightyRiverPower 1.5 per cent to $3.36.

Among other companies that had attracted investors with their reliable dividend streams, Genesis Energy fell 1.3 per cent to $2.24 and Meridian Energy 0.8 per cent to $1.915.

"We've been seeing a reasonable amount of foreign buying," said Grant Williamson, a director at Hamilton Hindin Greene. "Those buyers have now stepped back - what they make on stocks they lose on the currency.

"Spark had a great run up, but that buying support has disappeared somewhat and profit-takers are back in the market."

Williamson said that because of the strong rally in the local market, the looming earnings season "is going to have to be pretty positive".

Building products and construction group Fletcher Building fell 1.4 per cent to $8.38.

Fisher & Paykel Health, which benefits from a lower currency, ended three days of gains and fell 1.6 per cent to $6.21.

Milk marketer A2 Milk was down 3.6 per cent to 54c, and Diligent Board Member Services fell 1.6 per cent to $5.50.

Retirement village operator Summerset Group lost 1.6 per cent to close at $3.10.

Outside the NZX 50 index, Orion Health Group shares fell 13 per cent to $5.29, a record low, after the healthcare management software developer said delays in settling contracts and paying bills in North America would affect revenue.

Security software firm Wynyard Group fell 2.7 per cent to $2.14 after saying last year's revenue was below forecast because negotiations on a few contracts had dragged into the next financial year.

GeoOp, whose software helps mobile businesses such as builders to manage their workforce, fell 7.7 per cent to 60c. The company yesterday named Ben Foote as chief executive, replacing Leanne Graham, who is taking on a new role leading the company's push into the United States.

-BusinessDesk