Market commentaries

WELLINGTON: New Zealand shares fell for an eighth day yesterday as investors remain uncertain about the global economic outlook. Fonterra Shareholders’ Fund fell on the milk processor’s lower forecast payout to farmers.

The S&P/NZX 50 index declined 19.16 points, or 0.2%, to 9,050.82. Within the index, 26 stocks fell, 20 gained and four were unchanged. Turnover was $142.6 million.

Financial markets have become more volatile as the Federal Reserve’s projected interest rate hikes drive up US government bond yields. That is weighed more heavily on growthoriented stocks that typically trade at a high pricetoearnings ratio, such as Synlait Milk, which led the market lower yesterday, down 2.2% to $9.67. Pushpay Holdings, which is forgoing shortterm earnings to pursue global growth, fell 2.1% to $3.73.

Fonterra Shareholders’ Fund units were down 1.9% to $4.62 after the milk processor downgraded its forecast farmgate payout and raised its production expectations.

Auckland International Airport declined 1.7% to $7.16. The airport will list $150 million of sixyear bonds on the NZX tomorrow, paying annual interest of 3.51%.

New Zealand Refining fell 1.5% to $2.55 and Z Energy slipped 0.7% to $6.95.

Fletcher Building decreased 1.3% to $6.22 after Steel & Tube reiterated its reasons why it rejected a takeover bid by its larger rival. Steel & Tube rose 0.7% to $1.49.

Vector fell 0.9% to $3.40 after saying it would settle reliability breaches with the Commerce Commission.

Genesis Energy was unchanged at $2.48 after improving its customer churn in the first quarter and registering increased retail electricity and gas sales volumes. NZX posted the biggest gain, up 2.8% to $1.11, a threeweek high. Metlifecare gained 2.3% to $6.27, Restaurant Brands New Zealand was up $2.3% to $7.70 and Sky Network Television rose 1.9% to $2.12.

Heartland Bank gained 1.8% to $1.72 after the Government outlined plans to impose new restrictions and tighter regulation on payday lenders. The licensed bank lends money through peertopeer lender Harmoney Corp, of which it owns 13%. Trade Me, which owns 15% of Harmoney, rose 1% to $5.08.

Among other listed financiers outside the benchmark index, Geneva Finance was unchanged at 55c, General Capital was unchanged at 7c, while Turners Automotive Group rose 1.4% to $2.97.

TeamTalk gained 8.9% to 86c after saying its 2019 annual earnings would match the yearearlier result, even as it faced increased operating costs and investment.

Abano Healthcare fell 3.2% after yesterday’s annual meeting where the dental clinic investor warned annual earnings will face a squeeze on margins this year.

TIL Logistics fell 5.4% to $1.57 after coming off a trading halt. Its major shareholders sold a smaller stake than they had been prepared to divest.

A surprising turnaround has seen the Australian market finish the day higher on the back of healthcare and telco stocks as the financial sector shrugged off leftover jitters from Wall Street.

The benchmark S&P/ASX200 index was up 8.7 points, or 0.14%, to 6049.8 at 1630 AEDT, while the broader All Ordinaries rose 8.3 points, or 0.13%, to 6163.8, after the local market settled in the afternoon following an erratic open.

Healthcare, energy and telco stocks offset losses in heavy materials and a flat technology sector following a volatile morning.

CSL Limited softened to end the day up 1.91% but healthcare remained the best performing index with Cochlear Limited up 3.25% to $198.12.

Despite the weak market the Aussie dollar is back above US71c.

The Aussie is buying US71.30c, up 0.25% from US71.03c at 1630 AEDT on Tuesday.

Heavy materials remained in the red despite stronger iron ore and copper prices but big players BHP and Rio Tinto hung on to stay in the green.

The financial sector clawed its way back into the black with the big four banks all closing higher, rising between 0.040.32%.

Pressure remains on gold miners despite a firmer price with Newcrest and Northern Star both down and Evolution losing 1.81% to close at $2.71.

Supplyweakened aluminium prices kept South32 down and Alumina Limited flat but the energy sector was up 0.27% after oil prices climbed overnight. — BusinessDesk/AAP