Global worries push NZ market lower
New Zealand shares fell as a sharp drop in oil prices and doubts about the prospects for China-US talks weighed on sentiment in Asian markets. The S&P/NZX 50 index fell 33.78 points, or 0.4 per cent, to 8827.74. Within the index, 22 stocks fell, seven were unchanged and 21 rose. Turnover was $130 million.
US stocks fell for a third day as the drop in oil prices hit some of the country’s major industrial firms and mixed signals on the pending USChina trade talks spooked investors.
Greg Smith, head of research at Fat Prophets, said the bounce global equity markets enjoyed earlier this month has proven “short-lived” and investors are likely to be more wary ahead of the US-China trade talks at the G20 summit in Argentina.
“This market could be in feetfinding mode for the next couple of weeks,” said Smith.
The biggest gainer in the local benchmark yesterday was global logistics firm which
Mainfreight,
rose 5.2 per cent to $30.25. The firm reported a better-than-expected 32 per cent increase in first-half profit to $55.7m. Smith said the strong performance of Mainfreight’s international business was heartening, and noted that investors will still reward companies that deliver good results.
Generator Meridian Energy was the heaviest traded stock with almost 3 million shares changing hands. It rose 0.5 per cent to $3.235, after high wholesale power prices last month pushed its average New Zealand generation price for the four months through October almost 50 per cent higher at $124.50/MWh.
Genesis Energy rose 1.6 per cent to $2.55 while Contact Energy rose 1.2 per cent to $5.87.
Other big volume stocks yesterday included Precinct Properties, down 0.4 per cent at $1.425, with 2.7 million shares traded, Kiwi Property Group, up 1.1 per cent at $1.35, with almost 2.6 million shares traded, and Spark
New Zealand, up 0.7 per cent at $4.14, with more than 1.8 million shares traded. A2 Milk fell 2.8 per cent to $10.01, Westpac Banking Corp fell 2.4 per cent to $27.40, and Fisher & Paykel Healthcare fell 1.8 per cent to $13.45. Freightways led the declines, falling 6.2 per cent to $6.81.
Chorus fell 2 per cent to $4.92. The telecommunications network operator announced plans to reduce the wholesale price of its gigabit residential fibre product in mid-2019 and again in mid-2020.
Pharmaceuticals and pet food company Ebos rose 1.2 per cent to $21.20. Infratil, which reported on Tuesday a 19 per cent increase in halfyear operating earnings and raised its full-year forecast, rose 0.7 per cent to $3.51.