Sharechat Logo

MARKET CLOSE: NZ shares fall in listless trading; power companies gain

Wednesday 17th July 2019

Text too small?

New Zealand shares fell for a second day on light volumes, with heavyweights Auckland International Airport, Fisher & Paykel Healthcare and A2 Milk weighing on the broader index. Meridian Energy and Contact Energy rose as the government considers plans for faster transport electrification.

The S&P/NZX 50 Index decreased 15.36 points, or 0.1 percent, to 10,651.20. Within the index, 26 stocks fell, 15 rose, and nine were unchanged. Turnover was $83.7 million, with just five companies trading on volumes of more than a million shares. 

Stock markets across Asia were subdued, with no firm lead from Wall Street ahead of second-quarter US corporate earnings. The next major domestic reporting season is in August, although boards will need to start updating investors as they get a handle on how their companies performed during the June half. 

Grant Williamson, a director at Hamilton Hindin Greene, said companies will need to give guidance as they get "a better idea about what they've earned" but noted that there haven't been any downgrades or upgrades yet. 

Auckland Airport led the market lower, down 2.3 percent at $9.48 on a volume of 557,000 shares, less than half its 90-day average. F&P Healthcare fell 1.8 percent to $15.46 on 333,000 shares, and A2 was down 0.9 percent at $16.40. 

Williamson said local exporters were a little under pressure with the New Zealand dollar firming against the greenback, having started its ascent in the middle of June. Among other exporters, Sanford decreased 0.7 percent to $6.80, Pushpay Holdings slipped 0.3 percent to $3.33, and Air New Zealand dipped 0.2 percent to $2.69. 

Contact was the day's biggest gainer, up 3 percent at $7.95 on a volume of 665,000 shares, less than half its 1.5 million average. Meridian rose 2.4 percent to $4.78 with 1 million shares traded, and Mercury NZ advanced 1.4 percent to $4.62. Genesis Energy slipped 0.4 percent to $3.475 and Trustpower was unchanged at $7.26. 

Meridian and Mercury were among companies welcoming an Interim Climate Change Committee report on accelerated electrification and the government's response that it won't die in a ditch for its target for 100 percent renewable electricity generation by 2035. 

Carbon Fund units were unchanged at 94 cents. Mercury's 2049 capital notes paying 3.6 percent were the most traded debt security on a volume of 806,000. The notes closed at a yield of 3.17 percent, having been issued on July 11. 

Kiwi Property Group was the most traded stock on a volume of 2.9 million shares, about twice its 90-day average. It fell 0.3 percent to $1.60. Spark New Zealand declined 0.8 percent to $3.895 on a smaller volume than usual of 1.7 million shares, and Goodman Property Trust slipped 0.3 percent to $1.99 with 1.4 million units changing hands. 

Precinct Properties New Zealand was unchanged at $1.76 on a volume of 1.1 million shares. 

Dual-listed financial services firm AMP fell 0.5 percent to $1.90, adding to yesterday's 14 percent slump following news that the planned A$3.3 billion sale of its life unit was highly unlikely to proceed due to stipulations of the Reserve Bank of New Zealand.

(BusinessDesk)

Father's Day SOON! Crazy Deals on ALL IRG Yearbooks - More than 50% OFF - $19.99 for 44th IRG Yearbook 2018-2019


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar rises after Orr talks up the economy
Comvita posts $27.7m net loss on goodwill write-downs
Buyers emerge for Denton Morrell client book
WEL reviewing capital structure of fibre business
Cavalier announces strategic collaboration with NZ Merino Company
Delegat continues to invest after record year
Kiwibank's annual profit eases as fee income drops
TIL lifts operating earnings, watching for slowdown
Vector profit slides 44% on struggling HRV writedown
Steel & Tube returns to the black but says margins are squeezed

IRG See IRG research reports