Market commentary
AUCKLAND: There was a sea of red with prices across the board yesterday but the damage to the New Zealand sharemarket was not as bad as it could have been, heavyweight Fisher and Paykel Healthcare making a strong rebound.
The S&P/NZX 50 Index slipped 13.64 points, or 0.11%, to 12,070.83 after reaching an intraday low of 12,010.05. There were 98 decliners and just 47 gainers across the whole market and trade was steady with 52.03 million shares worth $152.13 million changing hands.
Forsyth Barr investment adviser Dan Stratful said the market was jittery and should remain that way until after the United States election tomorrow (NZ time). ‘‘Also, we’ve got the rising Covid19 cases globally.’’
After a rollercoaster ride last week, Fisher and Paykel Healthcare recovered $1 or 2.86% to $36 on trade worth $24.7 million. Fisher and Paykel is reporting its halfyear on November 24 and analysts are expecting it to be another strong result.
The a2 Milk Company continued its slide, falling 38c or 2.6% to $14.26 on trade worth $12 million. A recent report says Chinese consumers will be buying goods made in China, rather than global brands, on Alibaba’s big ‘‘Singles Day’’ sale later this month. If this eventuates, then it may take some of the gloss away from a2 Milk, which has been the sixthlargest globalselling brand in the sale.
Fletcher Building rose 11c or 2.68% to $4.21 on the day Grant Robertson was named minister for infrastructure, as well as deputy prime minister.
The other significant risers were AMP, up 12c or 7.36% at $1.75 after it said Ares Management Corp’s conditional takeover offer valued the company at $A1.85 ($NZ1.96) a share; and ANZ Banking Group, up 28c at $20.40 after its New Zealand bank said it was expecting a record October for home lending.
Freightways was up 20c or 2.38% at $8.48, and Restaurant Brands gained 12c to $11.99.
Westpac New Zealand’s cash profit dropped 38% or $393 million to $649 million for the year ending September, while the Australian parent suffered more, its net profit falling 66% to $A2.29 billion. Westpac NZ’s share price was down 15c at $18.95.
Among the decliners, Chorus was down 9c at $8.33; Infratil fell 11c or 2.03% to $5.31; Briscoe Group lost 6c to $4.04; and Pushpay Holdings was down 30c or 3.3% at $8.80.
After reporting a flat firstquarter result on Friday, Port of Tauranga fell a further 14c or 1.93% to $7.10, and dropped below $7 during the day’s trading. Retirement village stocks were also hit, Ryman Healthcare falling 20c to $13.80 and Summerset Group Holdings declining 21c to $10.19.
Property for Industry announced a steady thirdquarter dividend of 1.85c a share, and its price fell 4c to $2.86. Stride Property also decreased 5c to $2.16.
Newly listed Rua Bioscience fell 5c or 7.58% to 61c following the No vote on the cannabis referendum. Cannasouth rose 4c or 6.15% to 69c after saying the referendum result would not affect its medicinal cannabis business and its ability to deliver products to the market. —