NZ shares continue downward trend
New Zealand shares fell for an eighth day as investors remain uncertain about the global economic outlook. Fonterra Shareholders’ Fund fell on the milk processor’s lower forecast payout to farmers. The S&P/NZX 50 index fell 19.16 points, 0.2 per cent, to 9050.82. Within the index, 26 stocks fell, 20 gained and four were unchanged. Turnover was $142.6 million.
Financial markets have become more volatile as the Federal Reserve’s projected interest rate hikes drive up US government bond yields. That’s weighed more heavily on growth-orientated stocks that typically trade at a high price-to-earnings ratio, such as Synlait Milk, which led the market lower yesterday, down 2.2 per cent to $9.67. Pushpay Holdings, which is forgoing short-term earnings to pursue global growth, fell 2.1 per cent to $3.73.
“There’s still ongoing issues with trade wars, there are debt problems in Italy — there’s probably more to worry about in the market today than three or four months ago,” said Peter McIntyre, an investment adviser at Craigs Investment Partners. Fonterra Shareholders’ Fund
units were down 1.9 per cent to $4.62 after the milk processor downgraded
its forecast farmgate payout and raised its production expectations. Auckland International Airport
declined 1.7 per cent to $7.16. The airport will list $150m of six-year bonds on the NZX today, paying annual interest of 3.51 per cent. New Zealand Refining fell 1.5 per cent to $2.55 and Z Energy slipped
0.7 per cent to $6.95. Fletcher Building decreased 1.3 per cent to $6.22 after Steel & Tube reiterated its reasons why it rejected a takeover bid by its larger rival. Steel & Tube rose 0.7 per cent to $1.49. Vector fell 0.9 per cent to $3.40 after saying it will settle reliability breaches with the Commerce Commission.
Genesis Energy was unchanged at $2.48 after improving its customer churn in the first quarter and registering increased retail electricity and gas sales volumes. Yesterday’s annual meeting was the last for chair Jenny Shipley.
NZX posted the biggest gain, up 2.8 per cent to $1.11, a three-week high.
Metlifecare gained 2.3 per cent to $6.27, Restaurant Brands New Zealand was up $2.3 per cent to $7.70 and Sky Network Television rose
1.9 per cent to $2.12.
Heartland Bank gained 1.8 per cent to $1.72 after the Government outlined plans to impose new restrictions and tighter regulation on payday lenders. The licensed bank lends money through peer-to-peer lender Harmoney Corp, of which it owns 13 per cent. Trade Me, which owns 15 per cent of Harmoney, rose 1 per cent to $5.08.