NZ shares drop; Pushpay, Trade Me fall

Trade Me fell 2.4 per cent to $4.81.

New Zealand shares dropped as heightened global trade tensions weighed across Asian equity markets, led lower by Pushpay Holdings and Trade Me Group while Kathmandu Holdings gained again following its upgrade yesterday.

The S&P/NZX50 Index dipped 6.44 points, or 0.07 per cent, to 8,989.8. Within the index, 26 stocks fell, 20 rose and four were unchanged. Turnover was $112 million.

"Global markets got spooked by ongoing discussion about trade wars - statements by the US and Chinese governments particularly around technology investment has lead to weakness overnight," said Shane Solly, director, portfolio manager & research analyst at Harbour Asset Management.

"We have certainly had a very modest reaction on the day, in line with the rest of Asia. There's not really any signs of panic, very moderate and activity is modest."

Pushpay led the index lower, down 2.9 per cent to $4.07. Last week, the mobile payment app company completed a $100m bookbuild at $4.04 per share.

"Obviously it's post-placement, and people may be starting to think what happens if US technology stocks continue to come off," Solly said.

Trade Me fell 2.4 per cent to $4.81. Chief executive Jon Macdonald intends to step down in about six months, leaving a position he held for more than a decade and a company he joined in 2003. Solly said the news may have surprised some people.

Scales Corp dropped 2.1 per cent to $4.64 and Restaurant Brands New Zealand fell 2 per cent to $7.84.

New Zealand Refining Co was down 1.6 per cent to $2.49. Its hydrocracker unit has been shut down after a newly installed valve failed, lengthening delays from its scheduled refinery maintenance shutdown. The Whangarei-based company said it would give a further market update "once we have established the repair and restart plan."

Kathmandu was the best performer again, rising 2.1 per cent to $2.86. Yesterday, the stock surged 12 per cent to a three-and-a-half year high after the outdoor equipment retailer said it expects to increase profit this year on higher sales and better margins.

Most electricity generator/retailers rose, with Mercury New Zealand up 1.7 per cent to $3.385 and Meridian Energy rising 1 per cent to $3.16, while Genesis Energy dipped 0.2 per cent to $2.47.

"When investors become a bit wary about risk they tend to look at gentailers, and we're seeing reasonable hydrology," Solly said.

Fletcher Bulding rose 1.6 per cent to $7.10. Last week, the company announced the result of a strategic review which will see the company move to a decentralised operating model with more divisions, cutting annual overheads by $30m.

"Another reasonably solid day, reflecting the market having confirmation on the profit range at the investor day," Solly said. "That has seen some people more comfortable with what was said, the strategy there."