New Zealand stocks have fallen amid speculation the impending earnings season may show the impact of a high kiwi dollar.
The NZX 50 Index fell 7.730 points, or about 0.2 per cent to 4833.058 on Monday. Within the index, 25 stocks fell, 12 rose and 13 were unchanged. Turnover was $91.7 million.
Earnings season begins in earnest this week.
SkyCity, which is due to report on Wednesday, fell 1.6 per cent to $5.74. In December the company, which has casinos in Adelaide and Darwin, said first-half profit will fall due to the strong kiwi against the Australian dollar.
“What concerns investors really is the effect of the strong kiwi against the Aussie, which will start to impact on earnings,” said James Smalley, a director at Hamilton Hindin Greene.
“But it will also be in the company’s guidance going forward. The onus will be on companies that have significant Australian exposure to work with the strong kiwi.”
Fletcher Building, which counts Australia as its No.2 market, slipped 0.2 per cent to $8.98, while Brisbane-based jeweller Michael Hill International lost 1.4 per cent to $1.38.
Clothing chain Hallenstein Glasson fell 4.9 per cent to $2.90, its lowest price in more than four years.
As the election draws closer investors also consider the potential for some companies to come under increased regulation, a particular concern for the energy market, Mr Smalley said.
Auckland lines company Vector fell four per cent to $2.38 and Mighty River Power declined 0.8 per cent to $1.975.
Auckland International Airport gained 0.8 per cent to $3.69 and Air New Zealand rose 1.5 per cent to $1.705.
Telecom rose 2.2 per cent to $2.375.
OceanaGold was the index’s best performer on the day, gaining 3.8 per cent to $2.45.