New Zealand shares fell, led by companies often held for their relatively attractive yields including Summerset Group, Ryman Healthcare and property investors. Kathmandu gained after the outdoor clothing chain reported an uplift in third-quarter sales.
The S&P/NZX 50 Index fell 27.43 points, or 0.4 per cent, to 7378.41. Within the index, 27 stocks fell, 15 gained and eight were unchanged. Turnover was $125 million.
Summerset led the index lower, falling 2.2 per cent to $4.99, rival retirement village operator Ryman dropped 1.4 per cent to $8.53 and Metlifecare fell 1.1 per cent to $5.63. Some property companies, which are also held for their appealing dividend yield, extended yesterday's declines. Argosy Property fell 1 per cent to 99 cents, Vital Healthcare Property Trust dropped 0.9 per cent to $2.18 and Stride property declined 0.6 per cent to $1.72.
"Yield stocks have been coming off the boil generally this year," said Greg Smith, head of research at Fat Prophets in Auckland. "The reality is interest rates are going up but possibly in the near-term not as fast as people think. It is the same story in the US as well. The Fed kept interest rates on hold this week. Interest rates are going up but they're not going to rush up."
Australia & New Zealand Banking Group extended its decline for a third day since its interim results, falling about 2 per cent to $33.20. Westpac Banking Corp dropped 1.4 per cent to $36.50. National Australia Bank today said it returned to a first-half profit of A$2.55 billion from a year-earlier result marred by the writedown of the value of UK operations that it exited, and the board declared an interim dividend of 99 Australian cents.
