Share market slides as investors await Trump inauguration

NZ shares fell on light volumes as investors awaited the inauguration of Donald Trump as US president and greater insight into his policy programme. New Zealand Refining dropped, while SkyCity Entertainment Group gained.

The S& P/ NZX 50 index fell 13.88 points, or 0.2 per cent, to 7048.48. Within the index, 24 stocks fell, 16 gained and 10 were unchanged. Turnover was $ 128.7 million.

The US president was elected on a campaign pledging major infrastructure spending, tax reform, and more protectionist trade and immigration policies.

“There’s always a period of time when people are returning from holidays, but it seems to be slightly ex- tended this year,” said James Lindsay, who helps manage $ 400m of NZ equities at Nikko Asset Management.

“Markets have been waiting to get a bit more direction from Trump and his policies in the US and that might be contributing to some extent.”

NZ Refining led the benchmark index lower, falling 4 per cent to $ 2.65. Brent Crude oil prices increased 0.4 per cent after the International Energy Agency said oil markets had already been tightening ahead of agreed production cuts and it was too early to tell whether Opec members were complying with the agreed supply reductions.

Service station chain Z Energy fell 0.4 per cent to $ 7.36, while transport and logistics firm Mainfreight was down 1.9 per cent to $ 21, and courier company Freightways fell 1 per cent to $ 6.78.

Power companies providing stable dividends also fell after US Federal Reserve chairwoman Janet Yellen indicated several interest rate hikes may be needed this year, which would reduce the yield appeal of those stocks. Genesis Energy slipped 1.6 per cent to $ 2.155, Mercury NZ was down 1.1 per cent to $ 3.06 and Meridian Energy fell 1.1 per cent to $ 2.685.

Port of Tauranga, which owns half of PrimePort in the South Canterbury city of Timaru, fell 0.5 per cent to $ 3.95 after rival Lyttelton Port said its container terminal staff were continuing their industrial action over plans to change their rostered hours.

Casino and hotel operator SkyCity was the biggest gainer on the NZX50, up 1.6 per cent to $ 3.94. Sky Network Television, which i s awaiting a regulatory decision on whether its planned merger with mobile carrier Vodafone New Zealand can go ahead, rose 1.1 per cent to $ 4.50.