Market commentaries

WELLINGTON: New Zealand shares fell yesterday as uncertainty over the global economy and USChina trade tensions pushed Asian markets lower. Exporters Fisher & Paykel Healthcare, a2 Milk and Comvita all declined.

The S&P/NZX 50 index was down 70.66 points, or 0.8%, to 8722.51. Within the index, 23 stocks fell, 21 gained, and six were unchanged. Turnover was $195.6 million, of which Trade Me accounted for $90.6 million.

Strained trade relations between the US and China and the prospect of higher US interest rates have prompted investors to reassess their exposure to equities if slowing global growth and tighter credit conditions restrict corporate profits. Stocks across Asia fell, and Australia’s S&P/ASX 200 index was down 0.9% in afternoon trading. Hong Kong’s Hang Seng index fell 1.4%.

‘‘Investors are still a little bit nervous about what’s happening on the trade front in particular,’’ Grant Williamson, a director at Hamilton Hindin Greene, said.

F&P Healthcare led the market lower, down 4.2% to $11.85 in average trading. A2 Milk fell 3.4% to $10.75 and Comvita declined 3.3% to $5.28, both on light volumes.

Trade Me slipped 0.2% to $6.32 on a volume of 14.4 million shares, compared with a 90day average of 534,000. The online marketplace’s board has entered into a scheme of arrangement with UK private equity firm Apax Partners, who will pay $6.45 a share if shareholders agree.

Outside the benchmark index, Methven soared 32% to $1.52 after receiving a takeover offer from ASXlisted GWA Group at $1.60.

Mr Williamson said the deal was good for investors, but not so much for the broader market.

‘‘We’re going to lose another company from the NZX and you’re left wondering if it’s a case of turning the lights off if you’re the last one to leave — it’s not good.’’

Spark New Zealand fell 1.4% to $4.25 on slightly heavier trading than usual at 3.3 million. Meridian Energy rose 1.5% to $3.40 on a volume of 2.1 million.

Of other companies trading on a volume of one million or more shares, Kiwi Property Group declined 1.1% to $1.345, Auckland International Airport was down 1.8% at $6.97, Z Energy rose 1.2% to $5.80 and Contact Energy gained 1.4% to $5.88.

Fletcher Building fell 1.4% to $4.84 as investors continued to wait for news on the sale of its Formica international business.

Infratil declined 1.4% to $3.57 after saying a delay to the sale of its Longroad Energy asset will not affect earnings guidance. Separately, it also plans to invest A$50 million in its Canberra Data Centres unit.

Kathmandu Holdings rose 3.7% to $2.80 in light trading, posting the biggest gain on the NZX50 on the day.

The Australian sharemarket lost more than 1% yesterday, weighed down by financial stocks as renewed fears about a global growth slowdown gripped investors pessimistic about dour economic data from China.

The Reserve Bank of New Zealand announcement it was considering almost doubling the required capital banks would need to hold to bolster the financial system’s capacity to handle any shocks, dragged financial stocks lower. Shares in Australia’s big four banks fell on the news, as all operate within New Zealand. —BusinessDesk /AAP

A