by BusinessDesk
The S&P/NZX50 Index dropped 46.76 points, or 0.5 percent, to 9,048.63. Within the index, 23 stocks fell, 15 rose and 12 were unchanged. Turnover was $94.4 million.
"The market had a good run up through to August, and you tend to get some consolidation after that," said Grant Davies, investment advisor at Hamilton Hindin Greene. The local index soared 4.4 percent last month, its best performance in two years, and hit a record on Aug. 29. It has dropped 2.3 percent so far this month.
Leading the index lower today was Ryman Healthcare, which dropped 2.3 percent to $13.39. Fletcher Building fell 2.3 percent to $6.06 and Meridian Energy declined 1.9 percent to $3.16.
Summerset Group Holdings dropped 0.7 percent to $7.55. It will sell up to $100 million of seven-year fixed-rate bonds as it cuts its reliance on bank debt.
The new issue will pay a minimum interest rate of 4.15 percent per annum and is expected to be priced at an indicative margin of 1.65 percent to 1.75 percent above the seven-year swap rate, which was recently at 2.53 percent. That implies the final rate will be set at 4.18 percent to 4.28 percent. The actual margin will be set on Sept. 14 after a bookbuild process.
"There's plenty of funds out there looking for relatively safe places to be, and with term deposit rates where they are and conditions not being as flexible, lots of people look to the bond market," Davies said. "It's also a good way for companies to raise some reasonably priced debt."
Tourism Holdings was the best performer today, up 2.5 percent to $5.74. Fonterra Shareholders Fund rose 1.2 percent to $5.03 and Restaurant Brands New Zealand gained 1.2 percent to $7.66.
| « NZ shares fall as investors cash in August gains; Tourism Holdings, A2 drop | NZ shares up 2% as energy stocks rally on expert report; A2, Fisher & Paykel Health gain » |
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