Market commentaries
WELLINGTON: New Zealand shares fell as the attack on Saudi Arabian oil facilities unnerved investors and higher oil prices weighed on transport stocks including Air New Zealand and Mainfreight.
The S&P/NZX 50 Index declined 31.66 points, or 0.3%, to 10,831.75. Within the index, 26 stocks fell, 18 rose, and six were unchanged. Turnover was $68.8 million with just three stocks trading on volumes of more than a million shares.
Stocks across Asia were mixed as investors digest the drone attacks on two Saudi facilities. Brent crude oil prices rose as much as 19%, before settling at $US66.30 a barrel, at the end of the local trading session, up 10%. Hong Kong’s Hang Seng was down 1% in afternoon trading and South Korea’s Kospi 200 Index rose 0.2%.
‘‘The issues in Saudi Arabia are having a big impact on the oil market and that is flowing to Air New Zealand, and Mainfreight is off a bit as well,’’ Grant Davies, an investment adviser at Hamilton Hindin Greene, said.
National carrier Air New Zealand fell 1.9% to $2.655 on a volume of 1.6 million shares, more than twice its 90day average of 749,000 shares. Global logistics group Mainfreight was down 2% at $38.52, rental RV operator Tourism Holdings decreased 0.7% to $4.09.
Auckland International Airport was down 1.1% at $9.10. The country’s main gateway said international passenger numbers fell 1.2% in July from a year earlier, although domestic numbers were up 1.6%.
Companies held for their reliable income, including utilities and property stocks, were generally weaker.
Argosy Property led the market lower, down 2.7% at $1.44 on a volume of 488,000 shares, less than its 652,000 average. The property investor extended its banking facilities with ANZ Bank New Zealand, BNZ and HSBC, and added Commonwealth Bank of Australia and Westpac to the syndicate.
Precinct Properties New Zealand was the most traded stock on a volume of 1.7 million shares, more than its 915,000 average.
Contact Energy, Genesis Energy and Goodman Property Trust were all down about 2.3% at $8.40, $3.44, and $2.16 respectively.
Z Energy fell 2% to $5.42 on a volume of 1 million shares, more than its 676,000 average. The country’s biggest fuel retailer said the Commerce Commission made material errors in its draft study into the country’s fuel market, including misrepresenting its rate of return. Refining NZ was up 0.5% at $2.11.
Kathmandu Holdings posted the day’s biggest gain, up 6.2% at $2.75 on a volume of 89,000 shares, almost half its 167,000 average. The retailer reports earnings tomorrow, having last month signalled annual normalised profit rose as much as 13%. Briscoe Group, which owns 19% of Kathmandu, reports today. It was unchanged at $3.72.
A2 Milk and Synlait Milk were buoyed by the prospect of a takeover in Australia, where China Mengniu Dairy Co offered $A1.5 billion to buy Tasmanian formula company Bellamy’s Australia. A2 rose 4.4% to $14.50 and Synlait was up 3.6% at $9.32. Fonterra Shareholders’ Fund units were unchanged at $3.18.
Spark New Zealand fell 0.8% to $4.46.
Outside the benchmark index, Abano rose 9.1% to $4.08 after the dental clinic operator confirmed it was still in talks with several potential suitors.
General Capital was unchanged at 6c after the lender received a BB credit rating from Equifax with a positive outlook.
Wellington Drive Technologies was unchanged at 18c after negotiating a variation to its Onimeg Investments. It will repay $1.5 million on September 17 and has been given a sixmonth extension on another $1 million which falls due on March 31.
The Australian sharemarket has finished marginally higher as gains by oil companies and goldminers outweighed declines elsewhere in the wake of a drone attack on two Saudi Arabian oil facilities.
The benchmark S&P/ASX200 index closed up 4.3 points, or 0.06%, to 6673.5 points, while the broader All Ordinaries finished up 4.9 points, or 0.07%, to 6672 points.
The Australian dollar was trading at 68.75c, from 68.74c on Friday. — BusinessDesk/AAP