NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Markets / Shares

Big name stocks fall, dragging down sharemarket

By Sophie Boot
BusinessDesk·
12 Feb, 2018 04:47 AM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Fletcher Building was set to come out of the trading halt it was placed in last week at $7.77, but instead has extended the halt until Wednesday. Picture / Natalie Slade

Fletcher Building was set to come out of the trading halt it was placed in last week at $7.77, but instead has extended the halt until Wednesday. Picture / Natalie Slade

New Zealand shares dropped, led by Kathmandu Holdings and Fisher & Paykel Healthcare, while NZX gained.

The S&P/NZX 50 Index fell 33.31 points, or 0.4 per cent, to 8,059.06. Within the index, 26 stocks fell, 17 rose and 7 were unchanged. Turnover was $151 million.

"There's a bit more of an offer tone to the market today, despite that very sharp turnaround Friday night our time in the US," said Matt Goodson, managing director at Salt Funds Management.

"They're not dramatic movements, but quite a number of names are down about 1 per cent."

The market was expecting an announcement from Fletcher Building this morning increasing the losses at its building and interiors (B+I) unit.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Fletcher Building was set to come out of the trading halt it was placed in last week at $7.77, but instead has extended the halt until Wednesday, saying it has yet to complete a review of key projects and has begun talks with lenders about breaching covenants.

Fletcher said the trading halt would lift before the start of trading on Wednesday, "prior to which it will provide to the market an update of its review and the status of its discussions with its lenders."

"There's two possible thoughts there - one is that they're still finalising extent of the losses from the construction division, and the other is that they do have quite a complex debt structure, a mix of bank debt, US private placements, capital notes, so it is possible that getting everyone on the same page is not a simple exercise," Goodson said.

Advertisement
Advertise with NZME.

"The nature of the covenants means the breach is most likely confined to the 2018 year, but there will certainly be a lot of focus on 2019 and onwards as well. We still don't know if it's merely a breach which incurs some penalties or whether some form of equity raising is required."

Goodson said that while selling assets was a possibility for Fletcher, that sale process would take time and wouldn't have certain outcomes unless something was already well-advanced.

CBL Corp also remained in a trading halt at $3.17. The insurer says it hasn't worked out how much capital it needs to raise to satisfy regulatory solvency concerns and may take "a number of weeks" to finalise any transaction.

The stock was suspended from trading on the NZX last week as stockmarket operator NZX tries to work out whether CBL has kept the market informed of material information and met continuous disclosure obligations.

Discover more

Companies

How financial wobble will hit your back pocket

11 Feb 01:00 AM
Construction

Fletcher trading halt extended, in talks with banks

11 Feb 07:45 PM
Banking and finance

Fletcher Building investors worried: will shareholders pay?

11 Feb 07:59 PM
Business

What's happening at Fletcher Building?

11 Feb 09:04 PM

Kathmandu Holdings led the index lower, down 2.1 per cent to $2.30, with Fisher & Paykel Healthcare down 2.1 per cent to $12.45 and Ryman Healthcare dropping 1.9 per cent to $10.50.

Contact Energy dropped 0.4 per cent to $5.32. The company's first-half adjusted earnings fell 11 per cent to $236m as the electricity generator-retailer dealt with a dry spell which sapped its hydro generation in what it described as a "highly competitive" market.

Net profit sank 40 per cent to $58m, or 8.1c per share, which it said was due to a greater reliance on thermal power supply. Revenue rose 15 per cent to $1.19 billion.

"It was in line with diminished expectations," Goodson said. "They were suffering from poor hydrology in the half, since then it has rained and the Clutha has filled up for them. Importantly, they have made good progress taking core costs out of the business, which is a repeatable source of upside."

NZX was the best performer, up 2.7 per cent to $1.13. A report by the New Zealand Institute of Economic Research, commissioned by the stockmarket operator, says NZX's role in keeping the cost of capital relatively low gives a $2.4b kicker to the broader economy.

Property For Industry gained 0.6 per cent to $1.65. Its annual profit more than halved to $51.7m as it bore the cost of buying out its management contract and reaped a smaller fair value gain on investment properties.

Save

    Share this article

Latest from Shares

Premium
Shares

Market close: NZX not crying over spilt a2 Milk, gains 0.74%

08 Jul 05:51 AM
Premium
Companies

$30 billion blast-off: Why Rocket Lab just hit an all-time high

08 Jul 03:33 AM
Premium
Shares

Market close: Infratil rises as CEO Boyes ups stake

07 Jul 05:57 AM

From early mornings to easy living

sponsored
Advertisement
Advertise with NZME.

Latest from Shares

Premium
Market close: NZX not crying over spilt a2 Milk, gains 0.74%

Market close: NZX not crying over spilt a2 Milk, gains 0.74%

08 Jul 05:51 AM

Summerset shares lifted 3% to $12 after a trading update.

Premium
$30 billion blast-off: Why Rocket Lab just hit an all-time high

$30 billion blast-off: Why Rocket Lab just hit an all-time high

08 Jul 03:33 AM
Premium
Market close: Infratil rises as CEO Boyes ups stake

Market close: Infratil rises as CEO Boyes ups stake

07 Jul 05:57 AM
Premium
Market close: Tourism Holdings drops as NZ sharemarket ends week on high

Market close: Tourism Holdings drops as NZ sharemarket ends week on high

04 Jul 06:17 AM
Solar bat monitors uncover secrets of Auckland’s night sky
sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP