Shares mixed after day of light trading
Oz holidays and US Independence Day slow market down
New Zealand shares were mixed in light trading, with Sky Network Television and Stride Property leading gains while a2 Milk Co and Westpac Banking Corp fell.
The S&P/NZX50 Index fell 27.95 points, or 0.3 per cent, to 9025.64. Within the index, 21 stocks rose, 18 fell and 11 were unchanged. Turnover was $94.2 million.
Craig Stent, executive director and head of equities at Harbour Asset Management, said the market was quiet with Australian school holidays and the United States’ Independence Day holiday.
“There’s a bit of a lack of interest from US markets because they take a holiday, so it’s very quiet across the board,” Stent said. “You’ve got global indices and ETFs as well, they’ve become a large part of our market so when they’re not around it grinds to a standstill basically. All of July is
going to be quiet I think.”
Sky Network Television was the best performer, up 4.2 per cent to $2.73. Stride Property rose 1.6 per cent to $1.87, Scales Corp gained 1.5
per cent to $4.80, and Vital Healthcare Property Trust advanced 1.5 per cent to $2.07.
A2 Milk Co was the worst performer, down 3.4 per cent to $11.40,
giving up Tuesday’s gains. It had risen 3.2 per cent after agreeing with Synlait Milk to extend their infant formula supply deal and increase the volume of formula Synlait will supply as the two continue to focus on sales in the lucrative Chinese market. Synlait’s shares dipped 1 per cent to $11.44, having gained 1.4 per cent on Tuesday. Westpac Banking Corp dropped 1.7 per cent to $31.65, Arvida Group fell 1.5 per cent to $1.28 and Auckland International Airport declined 1 per cent to $6.77.
Gentrack Group was in a trading halt at $7. It will sell shares at $6.19, a 12 per cent discount, to raise $90m to repay bank debt used to fund a recent spate of acquisitions, leaving the door open for more merger and acquisition activity.
The utilities software developer says this raise will leave it with almost no bank debt and give it a strong enough balance sheet to make more acquisitions.