NZX gains, Smiths City dives 42pc

and

New Zealand’s sharemarket kicked off the week in negative territory, but posted a 1 per cent gain late yesterday.

By 5.30pm the benchmark NZX 50 index had reversed earlier losses to rise 1.09 per cent, or 104 points, to 9661.19.

That was in contrast with declines on Asian sharemarkets yesterday as countries reported surging numbers of infections from the novel coronavirus that has prompted shutdowns of travel and business in many parts of the world.

The New Zealand sharemarket would remain under pressure with such global uncertainty, said Grant Davies, of broking firm Hamilton Hindin Greene.

‘‘Sharemarkets don’t like uncertainty and that’s all we have at the moment.’’

Shares in Smiths City Group plunged in late trading to be down 42.5 per cent at 10 cents each, after the retail chain said it had reached a deal with its bank, ASB, to delay a debt repayment.

ASB agreed to delay by four weeks the repayment of $1.5 million of Smiths City’s $65m senior secured facility, due today. Smiths City believed it had enough capital to cover its debts, but said its capital structure was not sustainable and it had to secure more funding.

‘‘Even before the Government imposed the Covid-19 level 4 alert, Smiths City warned on March 18, 2020, that it had seen a reduction in sales and the number of customers passing through its stores and that these trends were directly attributable to the pandemic,’’ the company said in a statement to the NZX.

‘‘ASB’s extension of the facility demonstrated its willingness to support Smiths City through this extraordinary period and give Smiths City the space to engage in discussions with potential investors.’’

Shares in Hallenstein Glasson Holdings fell 6.5 per cent to $2.72 each after a decline in its sixmonth profit.

The clothing retailer said net profit was down 3.8 per cent on a year earlier, in line with guidance. Sales for the first seven weeks of the current financial period had been up, until it had to close stores due to the pandemic.

Fletcher Building, which said independent non-executive director Steve Vamos had resigned, fell 2.4 per cent to $3.20. Air New Zealand was flat at 90c, while Auckland International Airport fell

5.3 per cent to $5.24 and Fisher & Paykel Healthcare was up 6.6 per cent at $30.35. Tourism Holdings fell 10 per cent to $1.08.

Shares in dental company Abano Healthcare Group were down 22.8 per cent at $1.80 after it said a takeover offer from Bidco at $5.70 per share was off.

Australia’s benchmark ASX

200 index was up more than 4 per cent yesterday afternoon.

In the US on Sunday evening, futures for the Dow Jones industrial average fell more than 300 points, signalling another volatile week after it fell more than 900 on Friday. Standard & Poor’s 500 futures lost 1.5 per cent.