New Zealand stocks fell as weaker capital spending data in Australia weighed on companies with interests across the Tasman including Fletcher Building, A2 Corp and SkyCity Entertainment Group. Westpac Banking Group and Australian New Zealand Banking Group also fell.
The NZX 50 Index fell 8.862 points, or about 0.2 percent, to 4964.336. Within the index, 16 stocks fell, 19 rose and 15 were unchanged. Fletcher alone made up almost a fifth of the $106 million turnover.
Australia's S&P/ASX 200 Index slipped 0.5 percent in afternoon trade after government figures showed the biggest drop in capital spending since 2009, while Qantas Airlines posted a A$252 million loss and plans to sack 5,000 jobs. New Zealand companies with strong Australian interests were caught in the bad sentiment and sold off.
Fletcher, New Zealand's biggest listed company, fell 2.1 percent to $9.47. A2 Corp, which counts Australia as its largest market, fell 1.1 percent to 94 cents. SkyCity Entertainment Group, which operates casinos in Darwin and Adelaide, slipped 0.3 percent to $3.89.
"If you look at some of our big decliners today they do have quite strong business operations in Australia - that's clearly had an impact," said Peter McIntyre, investment adviser at Craigs Investment Partners. "There's concern over some of the operations, like Fletcher's, with over 50 percent of income out of Australia, any changes in Australia weighs on them."