Meridian gives up some gains in damp trade

New Zealand shares fell, led by bluechip stocks such as Meridian Energy and A2 Milk Co, as weaker than expected Chinese growth weighed on Asian markets.

The S&P/NZX 50 index dropped 74.74 points, or 0.7 per cent, to 11,067.12. Within the index, 25 stocks fell, 19 rose and six were unchanged. Turnover was $137.1 million.

Meridian led the local market lower, down 2.2 per cent at $5.28 on a volume of 2.9 million shares, more than its 90-day average of 1.4 million. It’s been the best-performing stock on the NZX50 so far this year, up 56 per cent.

Among other blue-chip stocks, Milk was down 2.1 per cent at $13.07, Ryman Healthcare declined 1.8 per cent to $13.30, Fisher & Paykel Healthcare decreased 1.3 per cent to $18.75 and Contact Energy slipped 1.2 per cent to $8.45 on a volume of 2.8 million shares. SkyCity Entertainment Group edged up 0.3 per cent to $3.94 after telling shareholders that there had been a positive start to the new financial year, particularly at its Auckland gaming machines.

Matt Goodson, a managing director at Salt Funds Management, said trading appeared to be going okay for the casino operator, which he said was surprising given its past sensitivity to a slowing economy. “Despite a plethora of signs of a weaker economy, things seem to be hanging in there well for SkyCity,” he said.

Sanford was up 2.7 per cent at $7.15 after the seafood group said there had been promising trial results for its greenshell mussel breeding programme. Goodson said that wouldn’t deliver any benefits tomorrow, but could be quite significant over the next five years.

Synlait Milk posted the day’s biggest gain, up 2.9 per cent at $9.70.

Sky Network Television was the most traded stock on a volume of 3.7 million shares, more than three times its 1.1 million average. It was unchanged at $1.07.

Goodson said investors were divided on the company, with some seeing strong upside since it secured the rugby broadcasting rights, and just as many seeing downside in a changing content environment.

Spark, which has been an aggressive competitor for sports rights, rose 1.1 per cent to $4.49. The telco yesterday said it would promote Stefan Knight to chief financial officer from next March, with David Chalmers to return to Melbourne. Kathmandu Holdings fell 1.3 per cent to $3.14. Shareholders yesterday overwhelmingly backed the $368 million acquisition of Rip Curl.

Eroad rose 4.6 per cent to $3.17 after the fleet management technology company said third-quarter sales were strong, and that it’s considering a secondary listing on the ASX.