Market commentaries

WELLINGTON: New Zealand shares fell as investors weighed up the impact of Fletcher Building’s deeply discounted rights issue soaking up demand from the broader market. Auckland International Airport and exporters A2 Milk Co and Comvita dropped.

The S&P/NZX 50 Index declined 61.83 points, or 0.7%, to 8344.52. Within the index, 26 stocks fell, 13 gained and 11 were unchanged. Turnover was a smallerthanusual $82 million.

Auckland International Airport led the market lower, falling 2.7% to $6.215, while exporters A2 Milk declined 2.3% to $12.19 and Comvita dropped 1.9% to $6.88. A2 yesterday signed up an exclusive distribution deal in South Korea, while honey products maker Comvita yesterday cut earnings guidance over a poor honey season and said it was subject to due diligence by a potential suitor.

Mercury NZ fell 1.7% to $3.25 after the electricity generatorretailer raised annual earnings guidance as favourable rainfall continued to bolster its hydro schemes.

Power companies’ March metrics showed favourable rainfall for the entire sector on the generation side, although retail remained tough. Meridian Energy fell 1% to $2.87, Genesis Energy declined 0.9% to $2.28, Contact Energy dropped 0.2% to $5.23 and Trustpower was unchanged at $5.75.

Primary industries stocks Fonterra Shareholders’ Fund units and PGG Wrightson were both unchanged at $5.75 and 62c respectively, livestock broker Allied Farmers fell 6.3% to 8.9c while transport fuels firm Z Energy fell 1.2% to $7.18, and wind farm developer Tilt Renewables slipped 0.5% to $1.95.

NZX was the best performer on the index, up 1.9% to $1.10. The stock market operator held its annual meeting last week where it outlined plans to introduce a new primary sector index, and elaborated on its dairy derivatives expansion plans.

Summerset Group Holdings rose 0.1% to $7.05 and Metlifecare fell 0.7% to $5.70 after each acquired land for new villages. Ryman Healthcare slipped 0.1% to $10.65 and Arvida Group climbed 1.7% to $1.20.

Spark New Zealand fell 1% to $3.425 and Fisher & Paykel Healthcare dropped 1.3% to $12.55.

A The Australian sharemarket yesterday closed almost flat as early gains drifted away following the Reserve Bank’s comments the next interest rate movement will likely be up.

The benchmark S&P/ASX200 index added 0.2 of a point to 5841.5 points and the broader All Ordinaries gained 1.3 points, or 0.02%, to 5934.3 points.

InvestSMART chief market strategist Evan Lucas said the market weakened in afternoon trading for several reasons, including the wording of the minutes of the last RBA meeting.

Mr Lucas said the minutes were generally positive, but may suggest that the RBA’s forecast for economic growth may not be as strong as it once was. —BusinessDesk/AAP