Shares fall, paced by Telecom record fine
After Telecom failed to have a record $12 million fine overturned, NZ shares fell and the NZX reported a decline in the value of cash market trading.
3 August 2012
New Zealand shares fell, paced by Telecom, which failed in a bid to overturn a record $12 million fine for historic antitrust violations.
NZX fell after reporting a decline in the value of cash market trading.
The NZX 50 index 16.11 points, or 0.5 per cent, to 3547.99. Within the index, 24 stocks fell, 11 rose and 15 were unchanged. Turnover was $124.4 million.
Telecom, the largest company on the exchange, fell 0.7 per cent to $2.65.
The telecommunications company failed to overturn a record $12 million fine imposed for breaching competition law by misusing its market power.
"It's immaterial quite frankly when you look at the size of the company," said Grant Williamson, director at Hamilton Hindin Greene Williamson said.
Separately, Telecom announced its head of retail Alan Gourdie also announced he will leave at the end of October, just two months into the company's new era under a new chief executive.
New Zealand was swept up in a Asia-wide sell-off amid disappointment European Central Bank president Mario Draghi failed to deliver investors with immediate steps to help shore-up Europe's debt crisis.
Shares in NZX fell 1.7 per cent to $1.17 after the exchange regular announced its cash market trading rose in volume while falling in value last month.
That reflects a global trend driven by increased use of automated trading that lets computers decide how to execute trades at the best levels.
The decline was led by PGG Wrightson down 3 per cent to 31 cents.
The biggest gainer was Heartland New Zealand, up 1.9 per cent to 54 cents. That was followed by Cavalier rising 1.3 per cent to $1.60.
Briscoe Group rose 2.3 per cent to $1.82.
The stock has gained 31 per cent so far this year.
Profit at the retailer rose to about $13 million in the six months ended July 31, from $10.3 million a year earlier.
NZN
© 2013 NZN, NZCity
