26 Nov 2013

Share market falls, dollar retreats

7:02 pm on 26 November 2013

The share market fell on Tuesday, with the NZX Top 50 Index falling 23 points to 4791.

Craigs Investment Partners head of wealth research Mark Lister said the weakness was mainly because of selling pressure on two of the major stocks, Xero and Fletcher building.

Xero gave an investor presentation to the market in which it said it expected sales growth of more than 80% for the year ending March 2014 but it also expected increased operating losses.

"Things seem to be still on track but I guess it's just a bit of profit taking," Mr Lister said.

"Remember the stock, as recently as six weeks ago, was under $20 so it's had a huge run up and I suspect it's just a bit of profit-taking on that front."

Xero shares fell $2.60 to $33, while Fletcher Building shares slid 13 cents to $9.19.

There had been no specific news on Fletcher Building, although it did have a big Australian business, so the New Zealand dollar pushing the highest level it had for some years against the Australian could have had an effect.

"I guess there are questions over whether some of these New Zealand companies with big Australian earnings will see a bit of weakness in terms of currency translation in bringing their Australian earnings back home," Mr Lister said.

Meanwhile, Ryman Healthcare shares rose 10 cents to $7.60.

Dollar retreats

The New Zealand dollar was little changed, retreating slightly from Monday's five-year high against the Australian dollar.

Bancorp Treasury Services senior client advisor Peter Cavanaugh said the currency market was consolidating after recent volatility.

"What we're seeing is simply consolidation after quite a sharp drop across the board by the New Zealand dollar last week, with no domestic or international developments, and with the world having one eye on the upcoming US Thanksgiving long, long weekend," he said.

Just after 5pm, the New Zealand dollar was buying 82.36 US cents, up from last week's low at 81.23 cents, and 89 Australian cents, down from Monday's 89.79 cent high.

It was also buying at 50 pence, 0.60 euro and 83 yen.