Freightways falls as global mood turns darker

New Zealand shares followed global markets lower as the spread of coronavirus outside China continued, and the Ministry of Health confirmed a case in New Zealand.

The S&P/NZX 50 index declined 176.01 points, or 1.5 per cent, to 11,261.16. Within the index, 42 stocks fell, 7 gained, and one was unchanged. Turnover was $320.9 million.

Risk aversion rippled through most markets. Global equities fell between 1.5 and 3.5 per cent and bond yields also tumbled.

The S&P 500 index is down almost 10 per cent from its mid-February high, and on track for its worst week since the global financial crisis. In contrast, the Shanghai Composite index has been recovering and is now within just 2.5 per cent of its pre-slump level.

Locally, domestic courier company Freightways led the market lower, down 5.8 per cent to $7.25 on a light volume of 101,000 shares.

Skellerup Holdings, an exporter with manufacturing operations in China and exposure to the US market, fell 5.7 per cent to $1.99. Among other exporters, Synlait Milk dropped 2.4 per cent at $6, and Fonterra Shareholders’ Fund declined 1.3 per cent to $3.91. Delegat decreased 5.2 per cent to $10.5.

Air New Zealand fell 4.2 per cent to $2.27 after on Thursday reporting strong domestic demand but weakening international demand due to the travel restrictions. Auckland International Airport fell 2 per cent to $7.87 on a well above average volume of 3.7 million shares.

Tourism Holdings fell 0.8 per cent to $2.49. The campervan and tourism attractions company yesterday reported a half-year net profit of $13.1m, down 25 per cent.

However, it reiterated its expectation of full-year profit of about $24m, a figure it forecast earlier this month, downgrading from $27.9m.

Port of Tauranga, which yesterday trimmed its full-year profit forecast by $2m on the back of reduced export log volumes due to coronavirus, fell 2 per cent to $6.55.

The country’s largest port now expects full-year earnings of $94m to $99m.

“The port is starting to see the impacts of a trade slowdown, particularly in the log sector,” said Matt Goodson, a director at Salt

Funds. Power companies continued to lose support, as the decision on whether Rio Tinto will close the Tiwai Pt aluminium smelter still looms.

Contact Energy fell 2.2 per cent to $6.7 on a volume of 1.6 million shares, Meridian Energy fell 1.7 per cent to $4.62 on a volume of 4 million shares and Genesis Energy fell

0.8 per cent to $3.055 on a lighter volume of

784,000 shares.