Sharechat Logo

MARKET CLOSE: NZ shares down, led lower by A2 and Z

Thursday 19th July 2018

Text too small?

New Zealand shares dropped, led lower by A2 Milk Co and Z Energy, while Trustpower and Summerset gained.

The S&P/NZX50 Index fell 28.5 points, or 0.3 percent, to 8,917.59. Within the index, 23 stocks rose, 19 fell and eight were unchanged. Turnover was $90.1 million.

"There's very light turnover but again our index is being led down by A2, Z, Synlait and Port of Tauranga," said Peter McIntyre, investment adviser at Craigs Investment Partners. "A2 makes up a good chunk of the index, and if it is having a weaker day it has an impact on the index as a whole."

A2 led the index lower, down 2.4 percent to $10.75.

"It has been priced to perfection and a number of investors are thinking perhaps they'll take a bit off the top. It really follows what happens in Australia as well where it is down today too," McIntyre said.

Z fell 1.8 percent to $7.17. Yesterday, the country’s biggest fuel retailer cut full-year earnings guidance by $30 million due to an extended shutdown at the Marsden Point oil refinery and high crude prices in the June quarter.

It is now forecasting operating earnings of $420 million to $455 million for the year through March 2019, down from previous guidance of $450 million to $485 million in earnings before interest, tax, depreciation and changes in financial instruments.

"Even though that downgrade is mostly one-off in nature, you have seen retail pump prices increase with the extra taxes," McIntyre said. "We've seen a bit of a pricing shock and volumes are back to a declining trend. A number of investors are taking a bit off the top, it's traded well for volume today."

Goodman Property Trust dropped 1.7 percent to $1.46, Pushpay Holdings fell 1.7 percent to $4.18, and Synlait Milk declined 1.4 percent to $10.70. Port of Tauranga dipped 1.2 percent to $5.01.

Trustpower was the best performer, up 2.1 percent to $5.77. The company gave an investor day presentation on Tuesday which McIntyre said has been very warmly received by market, due to the company saying there was potential for them to continue with special dividends.

"It's been well supported by income investors because they will end up being one of the higher yielding electricity stocks on the market, and when interest rates are low, investors are seeking yields," McIntyre said. 

Summerset gained 1.7 percent to $7.80, Australia and New Zealand Banking Group rose 1.6 percent to $32.06 and Kathmandu Holdings advanced 1.6 percent to $3.16.

(BusinessDesk)

  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:

December 14th Morning Report
NZ dollar trades in tight range as ECB confirms end to quantitative easing
MARKET CLOSE: NZ shares rise as optimism over US-China trade deal lingers; Fletcher gains
NZD under pressure against Aussie as investors cheered by easing of trade jitters
PFI properties’ valuation rises 5.5% to $1.32 billion
Broader definition of workplace harm in new govt health & safety strategy
MBIE officials grilled on terms of Westland Milk loan
Trade Me suitor Hellman & Friedman drops out
Hydrogen not a short-term option for Huntly - Genesis
Kiwibank says customers have a dwindling need of physical branches

IRG See IRG research reports