Market commentaries

WELLINGTON: New Zealand shares fell yesterday as a2 Milk Co’s decline continue since its chief executive sold down her holding. Rising bond yields also dimmed the lustre of property stocks.

The S&P/NZX 50 index dropped 63.45 points, or 0.7%, to 9286.40. Within the index, 36 stocks fell, seven gained and seven were unchanged. Turnover was $120.9 million.

The local market followed Wall Street’s lead after the Federal Reserve raised its key interest rate. Global bond yields have been increasing since US President Donald Trump this month introduced smaller tariffs on Chinese goods than earlier feared. New Zealand’s 10year government bond yield has climbed 13 basis points to 2.91% in the past fortnight.

Ratesensitive property stocks were weaker after the Fed’s move yesterday and as the Reserve Bank held the official cash rate at 1.75%. Goodman Property Trust fell 2.2% to $1.535, Vital Healthcare Property Trust declined 0.9% to $2.12, Kiwi Property Group decreased 0.7% to $1.40 and Precinct Properties New Zealand slipped 0.7% to $1.44.

‘‘We have seen bond yields rise a little in New Zealand this month and more so globally,’’ Matt Goodson, managing director at Salt Funds Management, said.

‘‘Their run over the last few days has been a little bit incongruous and they’re certainly giving that back in a hurry today.’’

A2 fell 2.5% to $11.55. It has shed 7.7% since CEO Jayne Hrdlicka disclosed a share sale at a time when the stock was being added to the FTSE index.

Mr Goodson said the stock has been under pressure since Ms Hrdlicka’s sale because she had been upbeat in investor presentations about the company.

‘‘One would hope the board would be having some quite words about what on earth went on there and the signal that it sends,’’ he said.

Meridian Energy shed rights to dividends of 11.38c per share. It led the market lower, falling 3.6% or 12c to $3.205. Skellerup Holdings declined 2.7%, or 6c to 2.14, giving up a 7c dividend. Ebos Group fell 0.5% to $22.25, or 10c, after shedding rights to a 35.5c dividend.

NZX posted the biggest gain for the day, up 1.9% to $1.10. Tourism Holdings increased 1.2% to $5.75 and SkyCity Entertainment Group advanced 1% to $3.97.

Among bluechip stocks, Fletcher Building was unchanged at $6.49, Fisher & Paykel Healthcare slipped 0.3% to $14.85, Auckland International Airport decreased 0.5% to $7.35, and Spark New Zealand fell 2% to $3.93.

Gentrack was unchanged at $7 after Forsyth Barr started covering the stock, rating it an ‘‘outperform’’ with a target price of $7.90.

Cavalier Corp dropped 7.6% to 61c after the carpet maker said it will sell its stake in a wool scouring business at an $11.8 million loss.

The Australian sharemarket closed lower yesterday, dragged down by mining and banking stocks after commodity

Aprices weakened and the royal commission’s interim report looms.

The benchmark S&P/ASX200 index was down 11.1 points, or 0.18%, at 6181.2 points while the broader All Ordinaries index was 8.5 points, or 0.13%, lower at 6299.3 points.

The financial sector closed lower for the fourth consecutive day as the first findings from the banking royal commission is expected today.

Bell Direct equities analyst Julia Lee said the banks would be particularly impacted by the findings related to financial advice.

The materials sector was down 0.3% after copper, gold and iron ore prices all fell on Wednesday night.

Rio Tinto slipped 1%, to $79.23, while gold miners Newcrest and Northern Star were down 1.4% and 2.1% respectively.

Oil prices eased, too, after US data showed a surprise build in domestic crude inventories — Brent crude fell 53c overnight to settle at $US81.34 a barrel.

But this did little to dampen the energy stocks, buoyed by Santos and Beach Energy announcing aggressive growth strategies.

Beach Energy shares shot to a more than 30year high after it said it planned to double production in the next five years. —BusinessDesk/AAP