Market commentaries
WELLINGTON: New Zealand shares joined a global selloff as investor sentiment soured amid warnings that easing lockdowns could cause a second wave of Covid19 infections.
The S&P/NZX 50 Index slipped 30.64 points, or 0.3%, to 10,788.03. Within the index, 31 stocks fell and 19 rose. Turnover was $236.2 million.
Stock markets across Asia followed Wall Street lower after US infectious disease expert Anthony Fauci warned premature lifting of lockdowns could trigger new outbreaks of the deadly coronavirus, claiming more lives and further damaging economies, many of which have started to reopen.
New Zealand’s benchmark index fell as much as 1.3% during the day, before regaining some ground as US futures began to turn upwards.
‘‘Our market started off weaker, but we’ve actually picked up some momentum,’’ said Peter McIntyre, an investment adviser at Craigs Investment Partners.
‘‘In the early stages today, US futures were in negative territory but have strengthened throughout the course of the day.’’
SkyCity Entertainment Group led the market lower, falling 5.5% to $2.41, giving up the gains it made after the announcement New Zealand would move to alert level 2.
Fuel retailer Z Energy dropped 4.4% to $3.04 after it released weekly fuel volume data showing demand still down 42% compared to prelockdown levels. Refining NZ fell 4.6% to 83c.
The uncertain economic outlook drove investors away from Fletcher Building, which fell 4.5% to $3.20, ahead of a Budget announcement that could include infrastructure projects.
The NZX50 was buoyed by the Reserve Bank’s decision to buy up $60 billion in government bonds, doubling its quantitative easing programme. It kept the official cash rate at 0.25%, but said it was prepared to use more tools if and when necessary.
That pushed the New Zealand dollar lower offering a boost to the NZX’s two biggest stocks, Fisher & Paykel Healthcare and A2 Milk. Both companies sell products in international markets and benefit from a weaker currency.
Fisher & Paykel Healthcare rose 3.3% to $31 and a2 Milk increased 1.3% to $19.55. Fonterra Shareholders’ Fund units advanced 2.6% to $3.50.
Stock market operator NZX posted the day’s biggest gain, up 3.9% at $1.35.
The duallisted lenders were stronger, with Westpac
Banking Corp up 1.3% at $16.39 and Australia & New Zealand Banking Group advancing 0.4% to $16.58.
Outside the benchmark index, NZME fell 5.7% to 25c. The media group released its notice of meeting yesterday, which showed a shareholder resolution seeking to break up the company.
The Australian sharemarket has swung from a 102point loss to finish yesterday in the green with a 19point gain.
After being down as much as 1.8% in initial trading, the S&P/ASX200 benchmark index finished 18.9 points up, or 0.35%, to 5421.9 points, while the All Ordinaries index closed up 16.4 points, or 0.3%, at 5431.7. One Australian dollar was buying US 64.79c, up from US 64.70c at Tuesday’s close. — BusinessDesk/AAP