Market commentaries
AUCKLAND: New Zealand shares joined a global selloff as rising US bond yields took the sheen off bluechip stocks including Fletcher Building, Contact Energy and Spark New Zealand. Z Energy fell to a twoandahalfmonth low on a threat of heightened regulation.
The S&P/NZX 50 index dropped 67.77 points, or 0.7%, to 9147.10, its lowest close in almost a month. Within the index, 32 stocks fell, 13 gained, and five were unchanged. Turnover was a quieterthanusual $74 million.
Stocks across Asia were weaker, taking their cue from Wall Street on Friday, as US bond yields continued to press higher on upbeat economic data there. China’s Shanghai Composite Index dropped 3% in afternoon trading. Australia’s S&P/ASX 200 index was down 1.4% and Hong Kong’s Hang Seng declined 0.8%.
Trading was subdued before the Columbus Day holiday in the United States.
New Zealand’s selloff was widespread, covering bluechip stocks, ratesensitive companies, and growthfocused firms. Pushpay Holdings fell 2.5% to $3.94, Fletcher dropped 2.2% to $6.29, SkyCity Entertainment Group declined 2% to $3.96, Contact was down 1.2% to $5.81 and Spark slipped 1% to $3.97.
‘‘The weakness on Wall Street is putting a bit of pressure on the New Zealand and Australian markets,’’ Grant Williamson, a director at Hamilton Hindin Greene, said.
‘‘We’re seeing some profittaking in some stocks. There’s not a lot of reasons to buy equities at the moment.’’
Z Energy fell 2.4% to $6.99, its lowest close since late July, after Prime Minister Jacinda Ardern said fuel companies are ‘‘fleecing’’ consumers. She has pledged to fasttrack legislation granting new investigative powers for the Commerce Commission. New Zealand Refining fell 1.1% to $2.60.
Retirement village operators were also weaker. Summerset Group fell 2.1% to $7.42, Ryman Healthcare declined 2.2% to $13.21, and Metlifecare slipped 0.9% to %6.29.
Kathmandu Holdings led the market lower, down 2.8% to $3.16. The kiwi is trading near a twoandahalfyear low, which pushes up costs for importers such as Kathmandu.
Sky Network Television posted the biggest gain on the day, up 1.9% to $2.14. Genesis Energy rose 1.2% to $2.45 and Trustpower increased 1.1% to $6.19.
Chorus advanced 1% to $4.90 after government data showed rising numbers of fibre connections.
NZX rose 0.9% to $1.09 after rejecting a bid by shareholder Elevation Capital to replace three of its board members and adopt a new strategy.
Tegel Group Holdings was unchanged at $1.22. Trading in the poultry company was suspended at the close pending its takeover and delisting later this month.
TIL Logistics halted trading in its stock yesterday to let some of its shareholders sell 14.5% of the trucking company in a bookbuild managed by Woodward Partners. The stock last traded at $1.66.
A Australian shares suffered their worst oneday performance since March yesterday as the Aussie dollar recovered slightly from a weak opening.
The benchmark S&P/ASX200 index slumped further to finish down 85.2 points, or 1.4%, to 6100.3, while the broader All Ordinaries was down 82.5 points, or 1.3%, to 6218.6.
Pepperstone head of research Chris Weston says further deterioration in USSino relations could be one of the factors to push the Aussie to break the US70c barrier.
‘‘There’s nothing working for the Australian dollar at the moment,’’ Mr Weston said, adding US Treasury bonds were also putting a dampener on the dollar.
The Aussie recovered from a rocky start to be buying US70.59c, up from US70.58c on Friday.
The heavy materials sector was the worst hit, sliding 2.4%. Aluminium and copper prices fell overnight and China’s central bank moved to free up liquidity in the sector.
Banking shares also dropped off as chief executives prepare to face their first public grillings, beginning on Thursday, over rampant misconduct and potential breaches of legislation detailed in the royal commission’s interim report.
‘‘We’ve got a very simple market,’’ Mr Weston said.
‘‘When you’re seeing 2.3% declines in the heavy materials sector you’re going to see falls elsewhere.’’ — BusinessDesk/AAP