NZ stocks: Fletcher Building and Telecom stocks contribute to slump

12.00pm


Shares in Fletcher Building have slumped 3 per cent in morning trading, possibly because of a fall in Australian building approvals, a broker said today.

At 11.30am, Fletcher Building shares were down 14c to 418 after yesterday hitting a two-month high of 437.

Greenslades broker Paul Valk said while there had been no news issued by the company, it was possible investors had taken their cue to sell from the Australian property market.

The Australian Bureau of Statistics (ABS) yesterday said building approvals had fallen 6.7 per cent to 14,913 units in November.

This compared with a rise of 1.6 per cent in October, ABS said.

"They (Fletcher Building) have certainly been weak. It's not a huge drop but it's certainly significant," Mr Valk told NZPA today.

However, the fall in Fletcher Building shares was in line with the overall market trend, he said.

The benchmark NZSX-50 was down 13.77 points at 2461.43, while the NZSX-40 capital index was down 11.03 points at 2292.50.

Among the 102 stocks traded were 22 rises and 33 falls. So far today, the New Zealand Exchange had seen $20.7 million worth of shares traded on volume of six million.

Market heavyweight Telecom was also helping to drag the market down, its shares dipping 6c to 539 on trading worth $6.9 million.

In other market news, trading in BHP Billiton accounted for $4.2 million, its shares selling for 1402 each.

Discount chain The Warehouse edged back 5c to 529, shedding some of its recent gains caused by investors predicting a bumper Christmas for retailers.

Similarly, Michael Hill International fell 1c to 499.

Shares on the rise included: Fisher & Paykel Appliances up 2c at 382, Freightways up 4c at 236, Ryman Health up 4c at 220, and TrustPower up 10c at 700.

Among those on the slide were: AMP down 5c at 570, Auckland International Airport down 5c at 700, GRD Macrae down 4c at 230, Steel & Tube down 3c at 381, and Wrightson down 2c at 149.

There had been $3629 worth of trading on the New Zealand Alternative Exchange this morning.

- NZPA