Market commentaries
WELLINGTON: New Zealand shares dropped as Warehouse Group fell on a slump in firsthalf earnings and Fletcher Building extended its decline, while Genesis Energy and Restaurant Brands rose.
The S&P/NZX50 Index fell 37.23 points, or 0.5%, to 7140.99. Within the index, 28 stocks dropped, 14 rose and eight were unchanged. Turnover was $152.1 million.
Warehouse Group fell 2.7% to $2.50. The retailer reported a 76% drop in firsthalf profit to $13.6 million after it took an impairment charge against its financial services unit, recognised restructuring costs and earned less from its Red Shed department stores.
Fletcher Building dropped 3.4% to $9.20. Last month the company posted a 2% gain in firsthalf profit that included unexpectedly weak earnings from its construction division, especially given its $2.7 billion backlog of work.
NZX, which gave up rights to a 3c dividend, was the worst performer, down 4.5%, or 5c, to $1.06.
Genesis Energy was the best performer, up 2.1% to $2.15, while A2 Milk Co rose 2.1% to $2.48.
Restaurant Brands New Zealand gained 0.9% to $5.44. The fastfood retailer lifted fourthquarter sales 37% to $121.6 million, bolstered by gains from its KFC stores in Australia.
The Australian sharemarket lost ground for a second straight day as investors dumped resource and energy stocks following a drop in iron ore and oil prices.
The benchmark S&P/ASX200 index fell 0.3% yesterday. The heavyweight materials index was the biggest loser, dropping 2.6%.
The falls in commodity prices also pushed the Australian dollar to its lowest level in almost two months, trading at US75.10 c at 4.30pm AEDT.
Given the fall in base metals, iron ore and gold prices, investors were steering clear of the aussie, Greg McKenna, chief market strategist at CFD and FX provider AxiTrader, said.
‘‘Throw into that a rising US dollar and a long speculative market and we have a setup for a reversal for the aussie.’’
The benchmark S&P/ASX200 was down 18.5 points, or 0.32%, at 5741 points.
The broader All Ordinaries index was down 19 points, or 0.33%, at 5780.5 points.
National turnover was 3.03 billion securities traded, worth $5.45 billion.