NZ stocks fall as Fletcher continues slide
New Zealand shares fell, reflecting a continued slide in the price of Fletcher Building, the construction company weathering a downturn in residential building in Australasia.
Telecom rose ahead of separate trading for its spun-off Chorus unit this week.
The NZX 50 fell 4.291 points, or 0.1 per cent, to 3252.266. Within the index, 26 shares fell, eight rose and 16 were unchanged.
Turnover was $93.6 million.
Brokers said the local bourse proved relatively resilient in the face of a sell-off in US and European equity markets amid reports a inter-party committee of the US Congress has failed to reach accord on $US1.2 trillion of budget cuts.
The kiwi dollar tumbled to an eight-month low, making New Zealand assets look relatively more attractive to overseas investors.
"The kiwi has fallen a reasonable amount in the last few weeks, so there is a bit of bargain hunting going on," said Grant Williamson, a director at brokerage Hamilton Hindin Greene.
"That's helped underpin the NZX 50 to "buck the trend we are seeing overseas."
Fletcher fell 1.2 per cent to $5.93 and has shed a quarter of its market value since it gave a profit warning in early October, saying first-half profit would fall 10 per cent and full-year earnings growth would stall.
"Investors are saying in the short term it is not turning around earnings," Mr Williamson said. Building and construction "has been hit harder than most".
Telecom rose 1.6 per cent to $2.52 as the company comes under increased focus ahead of the debut of its Chorus unit as a separately traded stock.
The Chorus stock has already traded on the ASX on a deferred basis, falling 2.2 per cent to $A2.25, while Telecom's ASX shares rose 1.4 per cent to $1.48, making a combined value of $A3.73.
"Analysts are researching it more in depth - creating interest in the stock," Williamson said.
NZN