Market commentary

WELLINGTON: The New Zealand sharemarket yesterday joined the wild rollercoaster ride with a fall of more than 1% as analysts and investors wondered whether an economic recession was fast approaching.

After another volatile day on Wall Street, the S&P/NZX 50 Index fell 134.32 points to 11,065.71, although it rose after reaching an intraday low of 10,974.83.

The index finished the week down 3.26%. It has fallen nearly 15.5% this year.

There were 92 decliners and 48 gainers on the main board, with 59.98 million shares worth $229.17 million changing hands.

Harbour Asset Management portfolio manager

Shane Solly said some people were likening the current situation to the 2002 tech wreck, the 2008 Global Financial Crisis and the Asian currency crisis.

‘‘There may be some elements there, but it’s not like those events. It’s different and the liquidity in the markets is pretty good.

‘‘We have seen a brutal correction with a period of violent trading. The dysfunction in the capital markets has been triggered by the UK activity,’’ Mr Solly said.

He said when KiwiSavers opened their latest quarterly statement it would look crisp and they would have to focus on the timeframe for their savings, whether it was three, four or five years and longer.

In the US, the Dow Jones Industrial Average was down 1.54% to 29,225.61 points; S&P 500 fell 2.11% to 3640.47; and Nasdaq Composite lost 2.84% to 10,737.51.

At home, leading stocks were again hit. Fisher and Paykel Healthcare reached a new low, falling 70c to $18.50; Auckland International Airport was down 29c to $7.20; Ebos Group declined $1.23 to $37.61; and Spark fell 10.5c to $5.

Also losing were: Mainfreight $67.40 (down $1.50c); Chorus $7.60 (5.5c); Infratil $8.65 (16.5c); Fletcher Building $4.84 (13c); Contact $7.48 (7c); Meridian $4.80 (5c); and Vector $4.04 (11c).

There was a recovery in the hardhit property sector. Stride $1.67 (up 9c); Goodman Trust $2 (4c); Argosy $1.20 (2.5c); and Precinct $1.30 (3c).

Freightways, down 5c to $9.80, has completed the $A160 million ($181.7 million) purchase of Allied Express Transport, one of Australia’s largest independentlyowned courier and express freight operators.

Hallenstein Glasson gained 21c to $5.20. It reported a 23% fall in net profit to $25.6 million on steady revenue of $351.21 million for the 12 months ending August 1. It is paying a final dividend of 24c a share on December 16.

Among other retailers, Briscoe Group fell 6c to $5.29, and The Warehouse lost 8c to $3.09.

Among the few gainers were Summerset Group $10.78 (up 28c); Restaurant Brands $7.66 (16c); Heartland Group $1.66 (3c); NZME $1.18 (3c); and Bremworth 52c (2.5c). — The