NZ sharemarket falls 3.67 points
Thu, 13 Sep 2012 6:53p.m.
By Hannah Lynch
New Zealand shares fell on bets stocks have risen enough to account for any extra stimulus the Federal Reserve should announce this week.
Tower and PGG Wrightson dropped, helping nudge the NZX 50 Index down from its highest point in more than four years.
The Index fell 3.67 points, or 0.1 per cent, to 3786.04. Within the index, 17 stocks rose, 22 fell and 39 were unchanged. Turnover was $105 million.
Investors are betting the Fed will announce a third round of asset purchases as well as extend a pledge to keep interest rates at record low levels.
Reserve Bank Governor Alan Bollard kept New Zealand's target rate unchanged on Thursday, citing weak growth in trading partner nations and a high kiwi, which is hurting manufacturers.
"The New Zealand markets have had a good run up until today on expectations of improving stimulus from the world's central banks," said Shane Solly, portfolio manager at Mint Asset Management.
"The markets have factored in some level of quantitative easing - if it comes out in a weaker form, markets will be softer."
Tower fell 2.7 per cent to $1.80. Chairman Bill Falconer, who was due to retire in February, has stepped down as the insurer considers proposals from other parties following a strategic review aimed at lifting the value of the company.
PGG Wrightson, New Zealand's largest agricultural firm and majority owned by Chinese investor Agria, fell 2.6 per cent to 37 cents.
Fisher & Paykel Appliances continued its rally, gaining 1.3 per cent to $1.18 in the wake of Haier's proposal to buy the 80 per cent of the company it doesn't already own for $1.20 a share. F&P Appliance today hired Grant Samuel as independent adviser, as it prepares its target company statement.
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