NZ shares slide as part of global sell-off
Increasing bond yields in the US put pressure on stocks
New Zealand shares joined a global sell-off as rising US bond yields took the sheen off blue-chip stocks including Fletcher Building, Contact Energy and Spark New Zealand. Z Energy fell to a two-and-a-half month low on a threat of heightened regulation.
The S&P/NZX 50 index dropped 67.77 points, or 0.7 per cent, to 9147.10, its lowest close in almost a month. Within the index, 32 stocks fell, 13 gained, and five were unchanged. Turnover was $74 million.
Stocks across Asia were weaker, taking their cue from Wall Street on Friday, as US bond yields continued to press higher on upbeat economic data there.
China’s Shanghai Composite Index dropped 3 per cent. Australia’s S&P/ ASX 200 index was down 1.1 per cent and Hong Kong’s Hang Seng declined 0.8 per cent.
New Zealand’s sell-off was widespread, covering blue-chip stocks, rate-sensitive companies, and
growth-focused firms. Pushpay Holdings fell 2.5 per cent to $3.94, Fletcher dropped 2.2 per cent to
$6.29, SkyCity Entertainment
Group fell 2 per cent to $3.96, Contact was down 1.2 per cent to $5.81 and Spark slipped 1 per cent to $3.97.
“The weakness on Wall Street is putting a bit of pressure on the New Zealand and Australian markets,” said Grant Williamson, a director at Hamilton Hindin Greene. “We’re seeing some profit-taking in some stocks. There’s not a lot of reasons
to buy equities at the moment.”
Z Energy fell 2.4 per cent to $6.99, its lowest close since late July, after Prime Minister Jacinda Ardern said fuel companies are “fleecing” consumers. New Zealand Refining fell 1.1 per cent to $2.60.
Retirement village operators were also weaker. Summerset Group fell 2.1 per cent to $7.42, Ryman Healthcare declined 2.2 per cent to
$13.21, and Metlifecare slipped 0.9 per cent to 6.29.
Kathmandu Holdings led the market lower, down 2.8 per cent to $3.16. Sky Network Television posted the biggest gain on the day, up 1.9 per cent to $2.14. Genesis Energy rose 1.2 per cent to $2.45 and
Trustpower increased 1.1 per cent to $6.19. Chorus advanced 1 per cent to $4.90 after Government data showed rising numbers of fibre connections.
NZX rose 0.9 per cent to $1.09 after rejecting a bid by shareholder Elevation Capital to replace three of its board members and adopt a new strategy.