Market commentary
WELLINGTON: The leading stocks by capitalisation were again spiked as the New Zealand sharemarket fell for the second day running on steady trading.
The S&P/NZX 50 Index was down 48.83 points, or 0.39%, to 12, 557.13, as 51.8 million shares worth $164.96 million changed hands. There were 69 gainers and 74 decliners over the whole market of 182 stocks, the number increased by one with the listing of financial services firm Harmoney.
Matt Goodson, managing director of Salt Funds Management, said it was a relatively quiet market driven down by the leaders.
‘‘The key thing you are seeing this month is a rise in bond yields out of the United States and a switch out of highgrowth stocks into the more cyclicaltype names.’’
Fisher and Paykel Healthcare fell 26c to $33.44; a2 Milk fell 28c to $14.54; Auckland International Airport declined 6c to $7.72; and Ebos Group slipped 5c to $25.15.
The two leading energy stocks were down, Contact 4c to $7.74 and Meridian 11c to $5.97. The two stocks were driven higher recently by offshore buying as they joined the S&P Global Clean Energy Index, which fell 1.27% overnight.
Ryman Healthcare fell 31c to $15.51 a day before it reports its latest financial result. Mr Goodson said it should be a tough result but ancient history. The market will be looking at Ryman’s outlook and it is a beneficiary of the housing bubble.
He said a2 Milk was conflicted by the market’s long and shortterm views after providing a trading update at its annual meeting. There were fears of a downgrade because of the daigou sales channel disruption but that did not come about, and there are still fears about a2 Milk’s performance in the second half of the financial year.
Summerset Group Holdings rose 17c to $10.75 after receiving consent from the Environment Court to build its $150 million retirement village in Boulcott, Lower Hutt, with 155 independent living apartments and villas, 56 serviced apartments and a 30bed care centre.
Other risers were Pushpay Holdings, increasing 10c to $7.29; Fletcher Building, gaining 8c to $5.51; Infratil climbing 8c to $5.60; Napier Port, recovering 4c to $3.58; Millennium & Copthorne Hotels up 6c to $2.02; and SkyCity Entertainment climbing 6c to $3.08.
Australia and New Zealand personal lender Harmoney Corp debuted on the NZX and ASX exchanges after raising $A92.5 million ($NZ97.5 million) at $A3.50 a share in its initial public offer. Its share price on the New Zealand market was down 17.7c to $3.57. Harmoney’s major shareholders include Trade Me, at 7.6%, Heartland Group Holdings (8.44%), Lookman Family Trust 8.98% and Kirwood Capital (8.7%). —