Market commentaries
WELLINGTON: New Zealand shares fell in relatively subdued trading yesterday, led by Ebos Group, Ryman Healthcare, Air New Zealand and Fletcher Building.
The S&P/NZX 50 Index lost 8.42 points to 8406.35. Within the index, 25 stocks fell, 14 gained and 11 were unchanged. Turnover was $89 million.
Hamilton Hindin Greene director Grant Williamson said trading volumes were low in the absence of much corporate activity and as global geopolitical uncertainty kept some investors on the sidelines.
Ebos dropped 2.7% to $18 and Ryman, which has gained 27% in the past 12 months, fell 2.6% to $10.66.
Air NZ fell 2.2% to $3.305. The airline said early engine maintenance checks would prompt some changes to its international flight schedule, but did not anticipate a hit to earnings and affirmed annual guidance.
It made the comments after the announcement last month from engine maker RollsRoyce and regulator the European Aviation Safety Agency directed operators to carry out checks on certain engines every 300 cycles rather than the typical 2000.
Fletcher Building fell 1.1% to $6.27. It had surged on Friday after a media report that Wesfarmers was building a stake in preparation for a takeover. However, Australian fund manager Ellerston Capital announced it had built up its holding to 5.1%.
‘‘Fletcher could well be right for potential corporate activity,’’ Mr Williamson said. ‘‘When you have a depressed blue chip, predators are going to have a look.’’
A2 rose 2.2% to $12.47 after the milk marketer said it had signed an exclusive distribution deal with Yuhan Corp in South Korea.
Synlait rose 1.1% to $9.48.
NZXlisted manuka honey company Comvita rose 0.6% to $7.01 having seesawed during the day. Comvita said yesterday a third party was undertaking due diligence in what may be a precursor to a takeover. The company also said its aftertax operating earnings for the year ending June 30 are expected to be between $8 million to $11 million, down from an earlier forecast.
Spark New Zealand rose 1.5% to $3.46. It yesterday announced it had bought broadcasting rights to the 2019 Rugby World Cup and several other competitions.
SkyCity Entertainment Group fell 1.5% to $3.93 and Mercury Energy rose 1.4% to $3.305.
The Australian sharemarket closed the day in positive territory, led by the energy sector as investors rallied around hopes that tension in Syria and the ChinaUS trade tiff had both peaked.
The benchmark S&P/ASX200 index was up 12.2 points at 5841.3 points, while the broader All Ordinaries rose 8.3 points to 5933.0.
Macquarie Private Wealth division director Martin Lakos said local markets embarked on a relief rally as Russian retaliation to USled strikes on Syria failed to eventuate.
‘‘We’re in positive territory, which is a surprise, but it looks like the market is more comfortable with what the US response in Syria was and how it was handled,’’ Mr Lakos said.
Helped by the prospect of the highest quarterly growth in US earning seasons since early 2011, local shares lifted from the open.
‘‘I would gauge that the US companies will manage those high expectations well, as they have done historically,’’ Mr Lakos said.
Origin Energy climbed 2.2% to $9.23, Woodside Petroleum was up 0.7% at $30.52, Santos added 0.3% to $5.93, and Oil Search climbed 0.9% to $7.69.
Iron ore prices were higher overnight, but fell 2.3% on the Dalian futures exchange, leaving local players mixed.
BHP Billiton gained 0.8% to $29.98, Rio Tinto lost 0.3% to $77.96, and Fortescue Metals fell 0.9% to $4.50.
A fortnight ahead of their reporting season the big four lenders were mixed. National Australia Bank was up 0.4% at $28.63, Westpac rose 0.2% to $28.95, ANZ gained 0.04% at $26.72, and Commonwealth Bank fell 0.7% to $72.62.
Transurban lifted 0.6% to $11.25 after the toll operator’s average traffic volumes in Sydney and Melbourne increased by more than 3% in the March quarter.
National turnover was 3.2 billion securities traded worth $A4.5 billion. — BusinessDesk/AAP