WELLINGTON: New Zealand shares extended their decline from a record high after Vector sold a gas pipeline business at a price that disappointed some investors, while Kiwi Property Group lead a drop in property companies, typically held for their attractive yield, after bond yields jumped.
The S&P/NZX50 fell 21.85 points or 0.36 per cent down to 6047.89. Within the index, 18 stocks rose, 24 stocks fell, and 8 were unchanged. Turnover was $93 million.
Vector fell 2.4 per cent to $3.25. The Auckland-based electricity and gas network operator sold its gas transmission and distribution assets outside Auckland in a $952.2 million sale to Australian investor First State Funds. The sale will result in a gain for Vector of about $167m.
In New Zealand, the yield on five-year government bonds rose to about 2.97 per cent, a four-month high. Kiwi Property Group fell 1.5 per cent to $1.355, Goodman Property Trust fell 1.2 per cent to $1.205, and Precinct Properties New Zealand fell 1.2 per cent to $1.235.
ANZ led NZ stocks lower on the NZX50, 2.6 per cent to $27.26. Sky fell 2.6 per cent to $4.56, and Trade Me Group fell 2.4 per cent to $3.74. Xero continued its upward streak, gaining 2.8 per cent to $19.86. AWF Madison Group rose 2.1 per cent to $2.45. Methven Group finished on a four-month high, with its shares jumping 9.4 per cent to $1.16.
Shares in RIS Group jumped 100 per cent to 0.4 cents after John and Michael Chow, the Wellington-based property developers and brothel owners, announced plans to list some assets on the NZAX market by taking over the shell company. RIS Group agreed to accept a conditional offer from trusts associated with the Chows which would see it buy the shares in the brothers’ 16 Park Avenue company on Feb. 22, 2016, for about $7 million, through the issue of shares, plus $500,000, the Wellington-based shell company said in a statement.
