Market commentaries

WELLINGTON: New Zealand shares dropped as many large stocks shed their dividend rights, with Synlait Milk, Heartland Bank and a2 Milk Co leading the index lower.

The S&P/NZX50 Index fell 126.4 points, or 1.4%, to 9101.6. Within the index, 38 stocks fell, nine rose and three were unchanged. Turnover was $131.4 million.

A lot of yesterday’s weakness came from large stocks going exdividend, with Air New Zealand, Heartland Bank, Trade Me Group, Sky Network Television and Vector all giving up dividend rights.

‘‘We also had mixed offshore leads and there are concerns about emerging markets with a more recent addendum to the Trump trade wars,’’ Peter McIntyre, investment adviser at Craigs Investment Partners, said.

Leading the index lower was Synlait Milk, down 4.9% to $12.75. It is the bestperforming stock on the index so far this year, up 86%. The secondbest performing stock, a2 Milk which is up 54%, dropped 4.2% to $11.88.

Heartland fell 4.6% or 8c to $1.67 as it shed a 5.5c final dividend; Air New Zealand dropped 3.8% or 12.5c to $3.21 as it gave up rights to an 11c final dividend. Trade Me dropped 2.9%, or 15c, to $4.96, as it shed both a 10.5c final dividend and a 22c special dividend.

Tourism Holdings was the best performer, up 3% to $5.85. It gives up its dividend rights on October 1. Summerset Group Holdings rose 0.9% to $7.71 and Skycity Entertainment Group gained 0.7% to $4.13.

Infratil dropped 1.3% to $3.405 while Tilt Renewables was unchanged at $2.30. Infratil yesterday said the $208.5 million Tilt takeover offer it was leading was ‘‘fair and reasonable’’ after Tilt’s independent directors recommended shareholders reject the deal.

Infrastructure investment company Infratil owns 51% of the Melbournebased wind and solar developer.

‘‘The offer price is quite a decent percentage lift from where the shares have previously traded,’’ McIntyre said. ‘‘There doesn’t seem to be an appetite at all from Infratil to increase the offer price. . . You may find some shareholders will get direction from the independent directors, and others will think it’s a reasonable offer price and take it. There’s definitely a bit further to run with this.’’

Market turnover was bolstered by Oceania Healthcare’s cornerstone shareholder Macquarie Group selling a 15.6% stake in the aged care operator for $104.5 million, reducing its holding to 41.7%.

Outside the benchmark index, Steel & Tube Holdings fell 1.6% to $1.21. It sold the leftover shares from a rights issue at $1.23, raising another $17.8 million to repay debt. — BusinessDesk

A Australian shares have fallen to their lowest since June in the wake of nearacrosstheboard falls triggered by increased USChina trade worries, falling world oil prices and more mortgage rate hikes by local banks.

The benchmark S&P/ASX200 index closed down 70 points, or 1.12%, at 6160.4 points yesterday, while the broader All Ordinaries index was down 71.4 points, or 1.13%, to 6267.8 points.

The Australian dollar was buying more than US72.10c shortly after noon yesterday but had a sharp fall when ANZ and Commonwealth Bank announced they would increase variable mortgage rates.

The big four banks’ shares rose last week following Westpac’s rate hike and yesterday CBA and ANZ’s moves had little impact.

Westpac fell 0.4% to $27.84, while Commonwealth Bank was the only major to finish higher, up 0.04% at $70.14. — AAP