Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

MARKET CLOSE: NZ shares fall in light trading

MARKET CLOSE: NZ shares fall in light trading; A2, Synlait decline while Pushpay, Fletcher gain

By Sophie Boot

April 23 (BusinessDesk) - New Zealand shares dropped in light trading, with A2 Milk Co and Synlait Milk leading the index lower, while Pushpay Holdings and Fletcher Building gained.

The S&P/NZX50 Index fell 19.6 points, or 0.2 percent, to 8,303.62. Within the index, 25 stocks rose, 15 fell and 10 were unchanged. Turnover was $84 million.

"We've certainly got that school holiday feel, it's very sluggish," said Peter McIntyre, investment adviser at Craigs Investment Partners. "We got mixed messages from Friday's close in the US - the pointer to the market is where US 10-year Treasury notes got to and it's sitting at 2.9738 as I speak. The watermark is 3 percent, that's what a number of analysts and market commentators have consistently looked at as a signal for the market to become weaker or have some more volatility. Even though futures are lining up okay, I think that's going to weigh on the minds of investors in the US, and that will impact on us potentially later in the week."

A2 Milk led the index lower, dropping 3.1 percent to $12.37.

"It's following its trading pattern in Australia too, on light volume for A2," McIntyre said. "It's been bouncing around ever since Nestle said they'd be competitors in that Chinese market, there's a bit of nervousness about competition despite A2 wanting to expand into other Asian markets."

Synlait Milk, which supplies A2, dropped 2.2 percent to $9.81.

Vector fell 1.2 percent to $3.20, Air New Zealand dropped 1.2 percent to $3.25, and Mainfreight declined 1.2 percent to $24.01.

Pushpay Holdings was the best performer, up 2.5 percent to $4.10, while Westpac Banking Corp rose 1.6 percent to $30.86.

New Zealand Refining gained 1.3 percent to $2.36. At the company's annual meeting in Auckland this afternoon, chief executive Sjoerd Post said the failure of the pipeline between the plant at Marsden Point and Auckland in September 2017 had a net impact on profit of $8.2 million. At the end of February, the company declared a 66 percent increase in net profit for the year to Dec. 31 to $78.5 million, driven by historically high average refining margins of US$8.02 per barrel of oil processed.

"They acknowledged the difficulties they've had, but also pointed out that going forward the margins should be quite wide," McIntyre said. "What's going to keep the market interesting over the next while is annual meetings where CEOs can flesh out results or put them in plain language for shareholders. Typically we've seen some good positive movements post these meetings in the past."

Fletcher Building rose 0.8 percent to $6.20. Last week, it completed the institutional entitlement offer and shortfall bookbuild component of its capital raising plan, reaping $515 million of $750 million target. Institutions paid $6.15 in the bookbuild - above the deeply discounted offer itself at $4.80. The retail entitlement offer opened today.

"The market will be pretty pleased they're trading above $6, to be honest," McIntyre said. "There's still some uncertainty about the US private placement holders, they're tending to raise enough capital to make sure that's not going to be an issue though. Some of the infrastructure segment is still facing risks and they're still reporting a nil margin, and some of their outstanding work, there's still uncertainty, so in all likelihood there's potential for further write downs from here, but we've seen enough interest from institutional investors on a value basis."

Precinct Properties gained 0.4 percent to $1.26. It has sold Deloitte House in Wellington for $10.2 million and says it's entered into a period of exclusivity with one potential buyer for its stake in the ANZ Centre in Auckland.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Taxing Multinationals: Next Step To Improve System

New legislation to improve the fairness of the tax system and prevent large multinationals from exploiting rules in order to shift their profits offshore has passed another step closer to becoming law. More>>

A Fuel And His Money: Petrol Prices Hit Records

The cost of 91 octane in Wellington and the South Island hit $2.30 a litre last week, beating the previous high set in 2013. Crude oil prices have been rising globally while the New Zealand dollar has fallen, making the cost of fuel more expensive. More>>

ALSO:

NZentry: EU And NZ To Start Free Trade Talks

A free trade deal between New Zealand and the European Union (EU) has taken a major step forward with the announcement overnight that the EU’s Foreign Affairs Council has approved its negotiating mandate. More>>

ALSO:

You'd Hope: Employers Told To Pay Minimum Wage

Advertisers offering jobs to backpackers are being told they must pay the minimum wage or risk prosecution. Last week, RNZ revealed a job website - Backpackerboard - was advertising roles below the $16.50 per hour minimum wage. More>>

ALSO:

Still Gaining: More Migrants Head Back Overseas

Annual net migration is down 4,800 from a high point a year ago, largely because more non-New Zealand citizens are leaving the country, Stats NZ said today. More>>

Christchurch: Red Zone Used To Boost Endangered Bee Population

“May 20 has been declared World Bee Day by the United Nations, and I am pleased to announce today that we have been able to use the red zone to protect and grow our native bee stocks,” says Minister Megan Woods. More>>

Trips, Support, Conferences For Agents: Insurers Spend $34 Million On Soft Commissions

“We are concerned that insurers are designing and offering incentives that potentially set advisers up to fail in complying with their obligations.” More>>

ALSO: