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

 

MARKET CLOSE: NZ stocks mixed as global worries weigh

MARKET CLOSE: NZ stocks mixed as global worries weigh on local news

By Gavin Evans

Nov. 15 (BusinessDesk) - New Zealand shares were mixed as weak international investor sentiment weighed on positive local earnings.

The S&P/NZX 50 index fell 1.85 points, or 0.02 percent, to 8,825.89. Within the index, 32 stocks fell, seven were unchanged and 11 rose. Turnover was $105 million.

US stocks declined for a fifth day with a bounce in oil prices not enough to quell concerns about slowing tech sector growth and a more hostile international trading environment.

The Dow Jones Industrial Average and the S&P 500 Index were each down 0.8 percent. In Australia, the S&P/ASX 200 index was recently down 0.8 percent, with banks again among the losers.

Robert Garden, an investment advisor with Craigs Investment Partners, said US investors are facing rising interest rates and “the potential for a slowing economy.”

In the absence of strong earnings news, investors there are increasingly looking to global drivers – such as the US trade talks with China at the end of the month, or the on-going Brexit talks for the UK.

“There’s a lot happening in the world to look at and get worried about” if that’s your inclination, he said. “That’s followed through to us as well.”

Vector, the country’s biggest power distributor, was the biggest loser in the main benchmark today. The stock fell 3 percent to $3.29, its lowest close since late August. The firm’s board is two directors light after the majority shareholding trust last week withdrew support for two respected Australian infrastructure specialists appointed earlier this year.

The biggest gainer was Freightways, which rose 3.2 percent to $7.03 – recouping half its loss yesterday after larger rival Mainfreight delivered a better-than-expected 32 percent increase in first-half profit to $55.7 million.

Garden said Mainfreight, at an all-time closing high at $31, is an example of the good quality firms investors are happy to reward. It rose 2.5 percent today, following its 5.2 percent increase yesterday.

Garden said good quality yield stocks, like Spark New Zealand and Chorus, and energy and property plays, are also being well supported, given the recent volatility and the outlook for higher interest rates.

Spark was the heaviest traded stock today with almost 2.3 million shares changing hands, down slightly on the daily average for the past three months. It rose 0.9 percent to $4.175.

Chorus rose 0.8 percent to $4.96. Almost 970,000 shares changed hands, about twice the average.

Among other big volume stocks was fuel retailer Z Energy. The stock was unchanged at $5.80 with almost two million shares changing hands – twice the daily average the past three months.

Kiwi Property Group was also unchanged at $1.35. Just over 1.8 million shares were traded, 66 percent more than usual.

Air New Zealand rose 1.5 percent to $3.105. More than 1.7 million shares changed hands, almost 80 percent more than the daily average.

Among the other majors A2 Milk Co rose 1.3 percent to $10.14. Synlait Milk fell 1.2 percent to $8.40.

Garden said both stocks have shown a little more stability recently. The question for some investors remains how their respective platforms in the Chinese market will perform.

Fletcher Building fell 1.6 percent to $5.63 the lowest close in seven months.

Having regained much lost ground earlier in the year, investors are again wary after SkyCity announced further delays on the Auckland convention centre Fletcher is building for it.

“It’s obviously going to come down to some concrete news that things are improving,” Garden said of Fletcher’s outlook.

Pharmaceuticals and pet food company Ebos Group was the second biggest gainers today, rising 2.6 percent to $21.75.

The stock rose a second day after telling investors the 10,000 square-metre warehouse it opened in Brisbane last month may deliver similar productivity and cost improvements to the warehouse it opened in Victoria in 2015.

Rakon was unchanged at 30 cents. The high-tech chip maker reported a 55 percent increase in underlying first-half earnings. It is expecting good demand from its mobile customers but reduced volumes in the global positioning market.

Sanford fell 1.4 percent to $7.25. The fishing company said the 1.5 percent increase in full-year operating earnings to $64.7 million was below expectations after climatic conditions reduced catches.

New Zealand Oil & Gas fell 6.4 percent to 59 cents. The onshore Kohatukai-1 well the firm is a partner won’t deliver commercial volumes of gas and will be plugged and abandoned.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>


Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>