Sharechat Logo

MARKET CLOSE: NZ shares fall amid ongoing concerns about global growth

Tuesday 29th January 2019

Text too small?

New Zealand shares fell, in line with declines in the US and across Asia, amid ongoing concerns about global growth, particularly in China.

Analysts downgrading their forecasts for Australian healthcare device maker Resmed also weighed on New Zealand rival Fisher & Paykel Healthcare, one of the country's top 10 stocks.

The benchmark S&P/NZX 50 Index shed 108.14 points, or 1.2 percent, to 9,006.38. Within the index, 10 stocks rose, 33 fell and 7 were unchanged. Turnover was $127.25 million.

“Resmed has had a very poor day and that’s had a big impact on Fisher & Paykel,” said Grant Williamson, a director at Hamilton Hindin Greene.

Resmed shares were down more than 11 percent on Friday and fell more than 12 percent today after a poor December quarter report – the Australian market was closed for the Australia Day holiday yesterday.

Fisher & Paykel shares fell 3.8 percent to $12.70.

A December quarter report from US-based heavy-equipment maker Caterpillar also fell short of analysts’ expectations, with the company blaming the impact of tariffs and the trade war between the US and China. Annual profit is likely to be less than analysts have been expecting because of China’s slowing economy, the company said, reinforcing reports from other companies, including Apple, about China’s drag on profit growth.

China is New Zealand's largest trading partner.

Australia’s S&P/ASX 200 Index was down almost 0.6 percent as the New Zealand market closed and that didn’t help market heavyweight A2 Milk shares of which fell 2 percent to $12.15.

Synlait Milk, which manufactures A2’s Platinum brand of infant formula, fell 3.7 percent to $9.40.

Telecommunications company Spark New Zealand was the most active stock with 5.35 million shares traded. The stock fell 0.7 percent to $4.055.

On the positive side, shares of casino operator Sky City Entertainment rose 2.4 percent to $3.79 after it upgraded its profit expectations.

The company said that it was getting strong profits from high-rollers and its flagship Auckland casino also delivered a strong performance.

Normalised earnings before interest, tax, depreciation and amortisation was up 10 percent to $189 million for the six months ended Dec. 31.

SkyCity was the day’s largest gainer while Gentrack was the biggest decliner on slim volume. It fell 5.2 percent to $5.07 with 14,957 shares changing hands.

(BusinessDesk)

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  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 mixed after RBA says its ready to cut rate if necessary
OMV granted marine discharge consent for Great South Basin
More detail needed on migrant worker policy, big employer says
Briscoe Group says outlook uncertain
FMA, RBNZ disappointed by life insurers' response; $1.4m of issues found
Steep rate cut may have spooked households - Westpac
Veteran media exec Joan Withers joins Sky TV board
Contact hires Refining NZ CEO to replace Barnes
17th September 2019 Morning Report
NZ dollar weaker after Trump authorises use of emergency crude stockpile

IRG See IRG research reports