Market commentaries

WELLINGTON: New Zealand shares fell as fears over the USChina trade war reemerged and weighed on investor confidence across the region. The Fonterra Shareholders’ Fund’s recent rally also took a breather.

The S&P/NZX 50 Index fell 75.29 points to 10,940.86. Within the index, 32 stocks fell, 14 rose and four were unchanged. Turnover was $122.4 million.

Stocks across Asia were weaker as investor sentiment turned sour. The US Commerce Department placed 28 Chinese companies on a list banning American firms from doing business with them, before trade negotiations between the two nations in Washington tomorrow. Singapore’s Straits Times Index was down 0.4% in afternoon trading, while China’s Shanghai Composite Index fell 0.2% and Australia’s S&P/ASX 200 Index declined 0.8%.

Grant Williamson, of Hamilton Hindin Greene, said the ongoing dispute between US President Donald Trump’s administration and China had weighed on Wall Street, which carried through into Asian trading.

The Fonterra Shareholders’ Fund fell 2% to $3.97 on a volume of 433,000 units. The fund had climbed 26% since unveiling a new strategy, putting its New Zealand assets squarely at the centre of its efforts to pursue value over volume.

‘‘After a great run following their result, it has come under some profittaking pressure today,’’ Mr Williamson said.

Chorus fell 1.2% to $5.04 in relatively light trading of 213,000 shares. The network operator announced former NBN and Telstra executive JB Rousselot would take over as chief executive next month. The company also unveiled strong connection growth for the September quarter.

Mr Williamson said the new CEO appeared to have pretty good credentials and the quarterly connections went relatively well. But the stock was caught up in the broader market weakness, he said.

New Zealand Refining led the market lower, down 2.9% at $2.02 on a volume of 166,000 shares.

Fletcher Building was the most traded stock on a volume of 2.2 million shares, more than its 1.3 million average. It fell 1% to $4.80.

Ryman Healthcare rose 0.5% to $13 on an unusually large volume of 2 million shares, almost five times its 417,000 average.

Skellerup Holdings posted the day’s biggest gain, up 4.6% at $2.30 on a volume of 163,000 shares. The rubber goods manufacturer told shareholders at yesterday’s annual meeting it was on track to achieve more earnings growth in the current financial year.

Arvida Group increased 0.7% to $1.47 after it confirmed a new surgical hospital in Queenstown was planned on land next to its Queenstown Country Club village.

A The Australian share market closed lower as pessimism about the outcome of the USChina trade negotiations weighed on market confidence.

The S&P/ASX200 index finished trade down 46.7 points, or 0.71%, to 6546.7 points, while the All Ordinaries was down 46.7 points, or 0.7%, to 6667.0 points.

Almost every sector was lower, led by consumer discretionary shares and the energy sector, which were down 1.7% and 1.57% respectively.

The only sectors that were higher were industrials and telcos, up 0.07% and 0.29% respectively. — BusinessDesk/AAP