Market commentary
WELLINGTON: New Zealand shares fell for a third session, taking their weekly decline to 2.3%, as investors cashed in some of August’s gains in what was a strong month for the local market. Tourism Holdings and a2 Milk Co declined.
The S&P/NZX 50 index decreased 6.21 points, or 0.1%, to 9095.39. Within the index 20 stocks fell, 23 gained and seven were unchanged. Turnover was $122 million.
The benchmark index hit a record on August 29 and climbed 4.4% in the month as investors were buoyed by a relatively upbeat corporate earnings season. With global markets in a lull as traders await US President Donald Trump’s decision on whether to impose a wider array of tariffs on Chinese goods, local investors have used the opportunity to cash in some of those gains.
‘‘We’ve had a lull over the last week from what’s been an all time high,’’ Shane Solly, a portfolio manager at Harbour Asset Management, said.
‘‘It’s still pretty good in the global scheme of things.’’ Mr Solly said the market was having a ‘‘healthy pullback’’ and had absorbed ‘‘a couple of capital raisings’’ with the Macquariemanaged funds selldown of Oceania Healthcare and shortfall bookbuild of Steel & Tube Holdings this week. Oceania was unchanged at $1.13 and Steel & Tube gained 2.5% yesterday.
Tourism Holdings led the market lower, falling 4.3% to $5.60, giving up Thursday’s gains when the rental camper van operator was the best performer on the bourse.
Restaurant Brands New Zealand fell 2.2% to $7.57, while a2 Milk declined 2.2% to $11.62 and Kathmandu Holdings decreased 1.9% to $3.10.
Sky Network Television dropped 1.9% to $2.12 after it was removed from S&P/ASX 300 index, effective from September 24. Sky also shed rights to a dividend payment yesterday.
Among other firms to shed dividend rights yesterday, Air New Zealand fell 1.6% to $3.16, Trade Me slipped 0.6% to $4.93, Heartland Bank rose 0.6% to $1.68, and Vector decreased 0.6% to $3.42.
Ryman Healthcare gained 3% to $13.70, the biggest gain on the benchmark index yesterday. Synlait Milk rose 2% to $13 and NZX increased 0.9% to $1.07.
Among bluechip stocks, Fisher & Paykel Healthcare rose 0.7% to $14.90, Spark New Zealand increased 0.4% to $3.90, and Auckland International Airport decreased 0.3% to $6.86. Fletcher Building was unchanged at $6.20, as was Meridian Energy at $3.22.
Orion Health Group was unchanged at $1.08 after independent adviser Korda-Mentha recommended shareholders back a proposal to carve up the company and return capital through a share buyback. The estimated buyback was reduced to $1.16to$1.26 per share due to uncertainty over the final washup.