Market commentary
WELLINGTON: Resurgent energy stocks lit up an otherwise quiet day on the New Zealand sharemarket, which made a small gain on another late surge in trading.
The S&P/NZX 50 Index finished 41.13 points or 0.34% ahead at 12,016.15 after falling as low as 11,923.94. There were 82 gainers and 56 decliners on volume of 53.78 million shares worth $175.85 million.
Since Prime Minister Jacinda Ardern said the Labour Party, if reelected, would find a way to keep the Tiwai Point aluminium smelter operating for at least three to five years, energy stocks have gone on a winning run.
Meridian climbed 22c or 4.37% to $5.26, Contact was up 7c to $7.27, Genesis gained 5c to $3.06, Trustpower edged ahead 3c to $7.30, and the thinly traded Vector, 75% owned by Entrust, climbed 13c or 3.16% to $4.25.
Dan Stratful, investment adviser with Forsyth Barr, said investors were attracted to the electricity shares which were defensive and paid good dividends.
The index’s leading stock, Fisher and Paykel Healthcare, again flattened the market, falling 47c to $33.30, after reaching a high of $37.68 on August 28.
Mr Stratful said if the decline continued, people would start viewing Fisher and Paykel as a buying opportunity.
‘‘When it gets into the early $30 [range], I think there will be support.
‘‘KiwiSaver money finds its way into quality shares like Fisher and Paykel.’’
The market sentiment was not helped by United States President Donald Trump’s latest move to call off the latest economic stimulus negotiations until after the November 3 election.
‘‘I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major stimulus bill that focuses on hardworking Americans and small business.’’ President Trump said on Twitter.
The statement caused the Dow Jones Industrial Average to make an abrupt turn and it finished overnight 1.34% down at 27,772.76, after having a 600point swing.
The S&P 500 Index fell 1.4% to 3360.97 and the Nasdaq Composite decreased 1.57% to 11,154.60.
Mr Stratful said most investors were expecting some volatility before the US election.
In New Zealand, three top 50 stocks made up recent lost ground. Chorus rebounded with a 12c gain to $8.84, a2 Milk was up 2c to $15.50, and Mainfreight rose 10c to $47.10.
Serko continued its strong move, up 4c to $4.85; Skellerup Holdings gained 6c to $2.85; and Auckland International Airport rose 13.5c to $7.535.
Briscoe Group fell 7c to $3.95 but fellow retailer Hallenstein Glasson was up 13c or 2.22% to $5.98.
Vista Group lost 9c or 584% to $1.45, and NZME was down 4c or 6.35% to 59c after its strong run.
Air New Zealand was down 2c to $1.54, with its latest operating statistics showing how tough present life is.
The number of passengers carried in August, compared with the same month last year, was down 73.6% from 1.32 million to 350,000.
Its revenue passenger kilometres fell 91% from $2.94 million to $262,000.
The passenger load factor was 36.5% compared with 83.3% for the same month last year.
Australian fund manager Investors Mutual Limited reduced its stake in SkyCity Entertainment from 8.16% to 7.03%, and SkyCity’s price slipped 1c at $3.
Cannasouth’s cofounder and executive director Nicholas Foreman has stepped down and the medicinal cannabis company’s share price rose 4c or 4.44% to 94c.—