Market commentaries
WELLINGTON: New Zealand shares dropped, led lower by Sky Network Television as the payTV operator sank to a nineyear low after a significant shareholder sell down, while Steel & Tube Holdings fell on news of court charges over its steel mesh.
The S&P/NZX50 Index fell 27.07 points, or 0.4%, to 7467.9. Within the index, 33 stocks fell, 14 rose and three were unchanged. Turnover was $159 million.
Bellwether stock Fletcher Building fell 1.4% to $7.54.
‘‘There’s a pullback on larger stocks such as Fletcher Building. From where it was one and ahalf weeks ago nine of its 11 trading sessions have been down on reasonable volumes,’’ James Smalley, director at Hamilton Hindin Greene, said. ‘‘There is maybe a bit of foreign investor selling out of our market, and possibly a little concern about the Auckland housing market slowing.’’
Sky TV was the worst performer, down 4% to $3.36, the lowest close since 2008. It has dropped 8.7% this month.
‘‘Major investors are looking at reducing their holdings. There are concerns about recent debt, increased churn and ongoing systemic concerns about streaming,’’ Mr Smalley said. ‘‘When you look at Chorus and their respective share prices, Chorus would expect to benefit from increased data usage but Sky TV not so much.’’ Chorus rose 0.8% to $4.615, heading towards its record $4.64 reached earlier this year.
New Zealand Refining Co dropped 3.1% to $2.48, and Vital Healthcare Property Trust fell 2.2% to $2.22.
Xero rose 0.6% to $26.25. Of the last 13 trading sessions, the stock has risen in 12 and been flat for one. The shares began rising in midMay when the cloudbased accounting software firm announced it was moving closer to its first ever profit as customer numbers continue to swell and its 2017 fullyear net loss narrowed as revenue grew.
‘‘Investors maybe think they’ve reached a tipping point in their business; volumes are up reasonably well,’’ Mr Smalley said.
SkyCity Entertainment Group was the best performer, up 1.6% to $4.46, while Vector rose 1.5% to $3.37.
Outside the main index, Steel & Tube dropped 6.8% to $2.35. It is facing 29 court charges of making false and misleading representations about its steel mesh product SE62. The Commerce Commission filed the charges in the Auckland District Court under the Fair Trading Act, relating to conduct between March 1, 2012, and April 6, 2016.
Fliway Group dropped 1% to $1.04. The transport and logistics firm cut annual earnings guidance as growing capacity constraints squeeze its margins, even as revenue grows with rising transport volumes.
A Better than expected economic growth has boosted the Australian dollar, while the sharemarket was steady as gains by banks and healthcare companies offset falls by the supermarket giants.
The Australian dollar jumped from US75.01c to a high of US75.48c shortly after the release of GDP figures that showed growth of 0.3% in the March quarter and an annual rate of growth of 1.7%.
The figures were slightly better than market forecasts, and some economists had warned of a potential contraction in the economy.
Patersons Securities economist Tony Farnham said the positive figures also drove a relief rally on the share market.
The benchmark S&P/ASX200 ended the day 0.01% lower, after falling as much as 0.4% in early trade.
Mr Farnham said bargain hunters boosted the financials sector, which has taken a pounding in recent weeks, and that helped to offset falls for retailrelated stocks.