Market commentaries

AUCKLAND: New Zealand shares fell 2.5% this week as the threat of the Tiwai Point smelter closure tripped up electricity companies that had been on a tear, and gave investors cause to ponder the slowing economy.

The S&P/NZX 50 Index decreased 42.88 points, or 0.4%, to 10,788.64, and was down from 11,067.12 last week. Within the index, 26 stocks fell, 13 rose, and 11 were unchanged.

Turnover was $110.8 million.

The electricity generatorretailers have been in focus this week due to Rio Tinto warning that the future of the Tiwai Point smelter was under review.

Supplier Meridian Energy was down 2.8% at $4.81 on a volume of 2.4 million shares, compared to its 90day average of 1.5 million.

Contact Energy declined 0.3% to $7.67, with 1.3 million shares traded. Genesis Energy posted the day’s biggest gain, up 3.6% at $3.20 on a volume of 840,000 shares, compared to its 562,000 average, and Trustpower decreased 0.1% to $8.19.

‘‘We’ve had real information, particularly with electricity prices, and while that certainly had an impact on the generators and the retailers, it also speaks to the broader outlook for New Zealand,’’ said Michael McCarthy, chief market strategist at CMC Markets.

‘‘That’s why we saw some fairly dramatic reactions this week to the downside — that falloff to consumption in electricity does not say good things about overall economic activity.’’

The upcoming MSCI index reweighting continued to drive trading in Fletcher Building and Mercury NZ, with speculation that the construction company will leave the index and the power company will join it.

Fletcher fell 1.3% to $4.60 on a volume of 2.4 million shares, while Mercury was up 0.6% at $5.05 with 2.2 million shares changing hands.

Sky Network Television led the market lower, down 4.9% at 98c on a volume of 213,000 shares, compared to its 90day average of 1.2 million shares traded.

Gentrack fell 3.4% to $5.12 on a typically small volume of 19,000 shares. The utilities software developer has significant operations in the UK, and has previously noted limited investment appetite among firms because of the Brexit ructions.

Port of Tauranga decreased 0.3% to $6.46. The country’s biggest export hub expects fullyear earnings to remain strong, despite telling shareholders at yesterday’s annual meeting that firstquarter cargo volumes were weaker.

Synlait Milk slipped 0.1% to $9.70 after it said it planned to buy dairy product processor Dairyworks for $112 million. A2 Milk decreased 0.5% to $12.74, and Fonterra Shareholders’ Fund units rose 1% to $4.14.

Outside the benchmark index, Serko soared 29% to $4.42 on a volume of 4.5 million shares, more than 100 times its 37,000 average.

The company raised $40 million in a placement at $4.04 a share, which brought in booking.com operator Booking Holdings as an investor.

Existing shareholders also sold into the placement.

Scott Technology fell 9.4% to $2.23 after the company yesterday reported a 20% fall in annual profit, even as revenue grew. The company’s cornerstone shareholder — JBS Australia — also reached a deal with the Overseas Investment Office over the influence of the meat firm’s shareholders, Joesley and Wesley Batista. They do not meet New Zealand’s good character test, having admitted to bribing officials in Brazil.

AWF Madison rose 2.2% to $1.84 after it yesterday reported flat revenue and a 20% increase in earnings before interest, tax, depreciation and amortisation.

Wellington Drive Technologies fell 9% to 17.3c after it said it plans to raise $5.3 million in a oneforfive prorata rights issue at 10c a share to accelerate growth. The issue is 100% committed with either underwrite agreements or prorata rights commitments, the company said.

A The Australian sharemarket closed for higher for a fifth straight day yesterday — and added more gains than the rest of the week combined.

The benchmark S&P/ASX200 index finished up 45.6 points, or 0.68%, to 6739.2 points, while the broader All Ordinaries was up 44.3 points, or 0.65%, to 6841 points.

The Aussie dollar was yesterday buying US68.21c, from US68.45 on Thursday. — BusinessDesk/AAP