Market commentaries

WELLINGTON: New Zealand shares fell as a large order of Contact Energy shares weighed on rivals Mercury NZ and Meridian Energy; Genesis Energy gained on a better result than expected.

The S&P/NZX 50 decreased 41.66 points, or 0.4%, to 9281.47. Within the index, 25 stocks fell, 19 gained, and six were unchanged. Turnover was $302.4 million, of which Contact accounted for $129.9 million.

Electricity generatorretailer Contact was the most active stock, with a volume of 20.8 million, more than 20 times its 90day average. The shares fell 2.3% to $6.28, having hit a fouryear high last week.

Matt Goodson, managing director at Salt Funds Management, said a large premarket order ‘‘put a little pressure on the other gentailer stocks‘‘, with Mercury down 1.1% at $3.56 on a volume of 334,000, half its threemonthly average. Meridian fell 2.9% to $3.65 on a volume of 2.7 million, almost twice its average. Trustpower decreased 0.5% to $6.40 on 16,000 shares, less than half its average.

Genesis was the exception, up 0.4% at $2.78 after reporting a dip in firsthalf earnings — from a record a year ago — while raising its annual guidance. Some 537,000 shares changed hands, more than its 354,000 average.

‘‘Genesis is up on a solid result that was ahead of some analysts’ forecasts,’’ Mr Goodson said. ‘‘It particularly featured good cost control.’’

Trade Me increased 0.2% to $6.38 on a volume of 1.9 million shares. It reported an 8.1% increase in underlying firsthalf earnings in what will probably be its swansong as a listed company. British private equity firm Apax Partners is offering $6.45 a share in a $2.56 billion takeover, and shareholders are expected to get their notice of special meeting next month.

Outside the benchmark index, T&G Global was unchanged at $2.81 after the fruit exporter reported an 11% decline in annual profit, in line with guidance.

Foley Wines jumped 6.5% to $1.65 after lifting firsthalf profit more than fivefold, and saying it is working to integrate its Mt Difficulty acquisition to boost annual earnings.

Michael Hill International climbed 7% to 61 cents after posting a smaller decline in firsthalf earnings than anticipated and maintaining its interim dividend. The jewellery chain’s new chief executive Dan Bracken also identified tweaks to the firm’s restructuring plans.

Veritas Investments fell 3.7% to 13 cents after reporting a fourfold increase in firsthalf profit and raising its annual earnings guidance on the acquisition of the Citizen Park pub in Auckland’s Kingsland.

New Zealand Oil & Gas declined 1% to 48 cents after reporting a $7.3 million firsthalf loss after Tuesday’s close.

Allied Farmers was unchanged at 7.9 cents. It also reported its firsthalf result after trading closed yesterday, lifting profit more than four times on a stronger performance in its livestock division.

Australian shares have finished higher on gains by the big miners and banks while investors took stock of several new earnings reports.

The benchmark S&P/ASX200 index finished up 21.9 points, or 0.36%, at 6150.3 points at 1615 AEDT yesterday, while the broader All Ordinaries was up 24.6 points, or 0.4%, at 6233.6.

‘‘It’s looking good for the Australian share market,’’ said Bell Direct equities analyst Julia Lee. ‘‘We’ve seen seven sessions of gains in the last nine sessions, so good momentum.’’

Yesterday was a ‘‘risk on day,’’ where investors moved from safer stocks into riskier ones, Ms Lee said.

Vocus Group and Seek were the top two ASX200 gainers on the backs of positive earnings results.

Ms Lee said Vocus ‘‘blew it out of the water’’. The telecommunications company’s shares closed 9.97% higher, to $3.86, a nearly twoyear high.

Seek shares closed up 8.25% to $18.77, with investors apparently impressed with the company’s longterm potential.

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