Market commentaries

WELLINGTON: New Zealand shares fell after local earnings were insufficient to embolden investors wary about the outlook for the global economy. Z Energy again led the market lower.

The S&P/NZX 50 index fell 56.82 points, or 0.6%, to 8778.78. Within the index, 22 stocks fell, 20 gained and eight were unchanged. Turnover was modest at $84.4 million.

Craigs Investment Partners adviser Peter McIntyre said the local market was being driven by offshore events.

Z Energy extended its decline for a third day after the company attempted to clarify its dividend position for the remainder of the 2019 financial year.

It was again the heaviest traded stock among the majors with 3.1 million shares changing hands, down from Friday but still more than three times the daily average the past three months.

The stock fell 5.1% to $5.20, its lowest close since May 2015. Z rattled investors on Thursday with a 21% drop in firsthalf earnings and a dividend about 5c less than they were expecting.

Volumes among the other majors were light. A2 Milk fell 5.1% to $10.15 with fewer than 600,000 shares traded, half the usual volume. Spark New Zealand rose 2.3% to $3.98 with fewer than 980,000 shares, almost a third of the average daily volume for the past three months.

Westpac Banking Corp rose 1.5% to $29.04. The company’s $A8.07 billion fullyear profit reported yesterday was little changed from a year earlier. Earnings from the local unit rose 5% to $1 billion.

Mr McIntyre said the Australian bank stocks had been reasonably ‘‘beaten up’’ and some investors might now be looking at them again.

AMP rose 5.3% to $2.98, and Trustpower rose 0.5% to $6.21 after announcing a 25c special dividend and signalling it may pay another special dividend early next year subject to debt levels within the firm and efforts to extend the maturity profile of its debt.

The company said it was expecting improved telecom customer signups in the secondhalf after discovering customers found offers of appliances more appealing than a matching value of free data.

Mr McIntyre said the firm’s fullyear guidance update only a few weeks ago had probably taken away a little from the company’s generally positive news yesterday.

Air New Zealand rose 1.5% to $2.98. The September passenger volumes reported last week were pretty strong, while the declining oil price was also positive for the carrier, Mr McIntyre said.

Tourism Holdings rose 2.2% to $5.11 and Orion Health Group rose 2.7% to $1.14. The technology company yesterday raised the likely price range for its planned buyback to $1.20 to $1.25 from $1.16 to $1.26, following the completion of the sale of its Rhapsody unit to UK private equity firm Hg for $205 million.

New Zealand Oil & Gas rose 3.2% to 65c. Subsidiary Cue Energy has reported elevated gas readings in the firm’s Paus Biru1 well in the Sampang licence in Indonesia.

Property for Industry fell 0.6% to $1.72. The company yesterday raised its thirdquarter dividend to 1.85c from 1.8c in the second quarter and a year earlier.

The Australian sharemarket closed lower following a weak lead from Wall Street. Energy and healthcare stocks remained in the red.

The benchmark S&P/ASX200 index closed down 31.1 points, or 0.53%, at 5818.1 while the broader All Ordinaries fell 31 points, or 0.52%, to 5904.8.

Economic activity in Australia continues to be affected by the ongoing trade war between the US and China. The two dominant economies may strike a deal when they meet at the G20 later in the month.

‘‘If China doesn’t do too well, this will most likely take hold in Australia, causing volatility, but the news coming out of the US is mixed so we’re still figuring out where those two countries stand,’’ CommSec market analyst James Tao said.

‘‘That’s been one of the heaviest weights on markets around the world.’’

Trade sanctions imposed on Iran have affected oil prices and energy stocks finished weaker, despite the US saying it would temporarily spare some jurisdictions.

Woodside Petroleum and Santos were down 2.28% to $33.40 and 1.55% to $6.37 respectively.

Healthcare stocks also finished weaker. CSL was the hardest hit, down 2.42% to $187.52.

Westpac reported a flat fullyear profit of $8.07 billion after customer compensation and legal costs contributed to a weak second half at its consumer and wealth divisions. Westpac, along with ANZ and NAB, all finished in the green. Commonwealth Bank the only one of the big four to finish in the red.