Market commentary

AUCKLAND: New Zealand shares fell, led lower by exporters Synlait Milk and Pushpay Holdings, as investors remained nervous about the global economy. Fonterra Shareholders’ Fund units rallied as the dairy giant unveiled a new strategy to get earnings back on track.

The S&P/NZX 50 Index decreased 38.67 points, or 0.4%, to 10,822.77. Within the index, 28 stocks fell, 17 rose, and five were unchanged. Turnover was $115.7 million, with just five stocks trading on volumes of more than a million shares.

Australian and New Zealand equity markets were weaker, despite Wall Street staging a recovery overnight.

‘‘It was really a very mixed day. The market’s a touch weaker and I do feel there’s a little bit of nervousness among investors with what’s happening offshore,’’ Grant Williamson, a director at Hamilton Hindin Greene, said.

Companies with global exposure were among those leading the local market lower. Pushpay, which generates almost all of its revenue in North America, fell 2.4% to $3.20 on an unusually large volume of 3.7 million shares. It was the most traded stock for the day.

Synlait Milk, which supplies milk marketing firm a2 Milk, posted the day’s biggest decline, down 3% at $9. A2 fell 1% to $13.11 on a volume of 1.1 million shares.

The news was more positive for the country’s dominant milk processor, as Fonterra Shareholders’ Fund units jumped 9% to $3.50, on a volume of 617,000 shares. Fonterra reported a bigger annual loss of $557 million as expected, booking $826 million of impairments and other oneoff charges.

‘‘The market has been expecting the worst from Fonterra for quite some time now. It’s a relief that that result is now behind them, and investors appear to like the new strategy,’’ Mr Williamson said. ‘‘That’s the best day Fonterra’s had for quite some time.’’

Electricity stocks were also stronger, recovering from a bout of weakness when investors realised some of their gains this year. Contact Energy rose 1.9% to $8.55, Meridian Energy advanced 1.7% to $5.39, Genesis Energy was up 1.6% at $3.445, and Mercury NZ increased 1.1% to $5.01 on a volume of 1.9 million shares.

Spark New Zealand fell 3% to $4.41 on a volume of 1.6 million shares, less than half its 90day average of 3.3 million. A Commerce Commission report yesterday found the mobile market was in good shape, but that there was scope for consumers to put pressure on carriers by shopping around for the best deal.

Infratil, which owns a cornerstone stake in Vodafone New Zealand, declined 0.4% to $4.88.

Auckland International Airport slipped 0.7% to $9.20 on a volume of 1.2 million while Air New Zealand rose 0.7% to $2.77.

Outside the benchmark index, Plexure Group fell 3.3% to 87c after forecasting revenue to rise as much as 36% in the March 2020 year. It did not provide earnings guidance, saying its investment plans could not be accurately assessed.

TIL Logistics dropped 10% to $1.15 on an unusually large volume for the tightly held trucking firm of 2.4 million shares.

A The Australian sharemarket feel for a third straight day, underperforming compared to its peers in the region.

The benchmark S&P/ASX200 index finished yesterday down 32.6 points, or 0.49%, to 6677.6 points, while the broader All Ordinaries was down 29.1 points, or 0.43%, to 6785.6 points. — BusinessDesk/AAP