Market commentary
WELLINGTON: New Zealand shares fell for a fifth day yesterday as investors remain wary of the impact a trade war will have on company earnings, and exportfocused stocks Tourism Holdings and Pushpay still under pressure. Fletcher Building declined ahead of today’s annual meeting.
The S&P/NZX 50 index decreased 16.77 points, or 0.2%, to 8792.93. Within the index, 28 stocks fell, 19 gained and three were unchanged. Turnover was smaller than usual at $80.3 million.
New Zealand’s benchmark index followed Australia lower as comments by US Vicepresident Mike Pence at the Apec leaders’ meeting over the weekend kept investors nervous about the protracted trade dispute between the US and China. The world’s two biggest economies have been at odds over the past 18 months, and investors are worried an economic slowdown will undermine company earnings.
Shane Solly, a portfolio manager at Harbour Asset Management, said New Zealand’s market held up well and the local economy was still in reasonably good health.
‘‘There’s a little bit of volatility at a high level and companies reporting here which is taking people’s attention,’’ he said. ‘‘At an overarching level, investors are still pretty wary about slowing activity and extended tariff discussion.’’
Tourism Holdings led the market lower on smaller than usual volumes, falling 3.4% to $4.82, the lowest close in 12 months. Pushpay dropped 3.1% to $3.15, the lowest close since November last year.
Mr Solly said Tourism Holdings had been unwinding its gains as investors question the future of its US business, while Pushpay is still under pressure from its recent earnings report.
Fletcher Building declined 2.1% to a sevenmonth low $5.55 on a third of the average trading. Today’s AGM will be the first for chief executive Ross Taylor and chairman Bruce Hassall.
A2 Milk was the most traded stock as 1.4 million shares changing hands. It rose 3% to $10.47 ahead of today’s annual meeting, and Mr Solly said investors expected the milk marketing firm’s trading update to show doubledigit revenue growth.
Among other companies with more than a million shares changing hands, Spark New Zealand declined 1.8% to $4.125 and Goodman Property Trust was unchanged at $1.515.
Kiwi Property Group fell 1.1% to $1.345 after reporting a small decline in firsthalf underlying earnings after asset sales provided a smaller income stream. Investore Property decreased 0.7% to $1.50 after distributable earnings edged higher.
Outside the benchmark index, Metro Performance Glass plunged 24% to a record 64c after acknowledging a new entrant to the local market was likely to emerge in the next 18 months. Mr Solly said the new rival would be a significant change for the company.
Sanford fell 2.1% to $7.05 after agreeing to sell its Taurangabased fishing business for an undisclosed sum. Separately, First NZ Capital affirmed its ‘‘neutral’’ rating on the stock while cutting the target price 11% to $7.39. — BusinessDesk