Market Close: NZ shares fall as investors worry about virus spread

Investors have priced the market for a quick recovery, but authorities have warned of a further surge in cases. Photo / 123RF

New Zealand shares fell as a global spike in coronavirus cases kept the risk of further economic disruption on investors' minds.

The S&P/NZX 50 Index declined 30.89 points, or 0.3 per cent, to 11,553.16. Within the index, 30 stocks fell, 13 rose, and seven were unchanged. Turnover was $113.6 million.

The benchmark fell with the Australian market as coronavirus cases in the southeast state of Victoria continued to rise.

Investors have priced the market for a quick recovery, but authorities have warned that the surge of cases could take weeks to stamp out at considerable cost to the economy.

The US states of Florida, California and Texas continue to see record number of infections each day.

Greg Smith, head of research at Fat Prophets, said worsening infections were keeping risks still posed by the pandemic in focus for investors.

"The second wave is certainly on investors' minds," Smith said. "That is raising concerns and keeping risk front-and-centre."

The downside risk was being balanced somewhat by the prospect of more stimulus to help support economies, Smith said.

The US Congress will begin debating a new aid package this week and at the European Union Summit leaders are negotiating a stimulus plan to revive damaged economies.

Pushpay Holdings led the market lower, falling 4.1 per cent to $7.67. The stock was last week's biggest decliner, shedding 13 per cent.

Smith said the market was seeing rotation away from higher priced stocks as investors sought out value. Pushpay, as one of the pandemic success cases, has seen some profit taking, he said.

Other high-priced stocks also declined. Mainfreight fell 2.1 per cent to $42.20, Fisher & Paykel Healthcare declined 0.5 per cent to $35.76, Ebos Group dropped 0.7 per cent and A2 Milk Company fell 0.8 per cent to $20.53.

Restaurant Brands dropped 4.1 per cent to $11.80, giving up some of the 6.4 per cent lift it saw on Friday.

Some property stocks were weaker as investors took profits following a surge for the sector at the end of last week.

Trustpower held at $6.90 and Genesis Energy fell 2.3 per cent to $2.935. Photo / 123RF

Vital Healthcare Property Trust fell 2.3 per cent to $2.57, Goodman Property Trust slipped 2.1 per cent to $2.1450, Investore Property declined 2 per cent to $1.93 and Property For Industry fell 1.2 per cent to $2.51.

Energy stocks mostly rose as investors sought value as the industry re-positions ahead of the closure of Tiwai aluminium smelter.

Meridian Energy rose 1.9 per cent to $4.78, Contact Energy advanced 0.7 per cent to $5.81, Mercury NZ was up 0.7 per cent to $5.81 and Vector gained 0.3 per cent at $3.72.

Trustpower held at $6.90 and Genesis Energy fell 2.3 per cent to $2.935.

Manufacturer Skellerup Holdings posted the day's biggest gain, rising 2.1 per cent to $2.49.

Outside the benchmark, Hallenstein Glasson Holdings announced that with stay at home restrictions returning to metropolitan Melbourne the group had to close 10 stores. Its share price rose 0.3 per cent to $3.62.