Mar­ket com­men­taries

Otago Daily Times - - BUSINESS & MONEY -

AUCK­LAND: New Zealand shares ended a nine­day los­ing streak yes­ter­day, a2 Milk Co and blue­chip stocks such as Spark New Zealand, Mer­cury NZ and Auck­land In­ter­na­tional Air­port driv­ing the re­cov­ery.

The S&P/NZX 50 in­dex in­creased 122.04 points, or 1.4%, to 8843.24. Within the in­dex, 28 stocks gained, 17 fell and five were un­changed. Turnover was $129.4 mil­lion.

The bench­mark in­dex fell 4.1% for the week. Wide­spread sell­ing across the globe on Thurs­day ac­counted for much of the NZX 50’s de­cline and traders strug­gled to at­tribute the turn in sen­ti­ment to a par­tic­u­lar event.

‘‘Yes­ter­day’s move was the fifth­worst one­day per­for­mance we’ve seen, so it’s not much of a sur­prise that we’re see­ing some bounce,’’ port­fo­lio man­ager at Nikko As­set Man­age­ment James Lind­say said.

‘‘Some­times things are driven by one­off events, and some­times it’s a col­lec­tion of things — ris­ing in­ter­est rates, trade ten­sions, etc, built up to a point where that was enough.’’

De­spite hit­ting a four­month low this week, the NZX 50 is still up so far this year, one of the few eq­uity bench­marks across Asia in pos­i­tive ter­ri­tory. The New Zealand bourse’s 5.5% div­i­dend yield is the third­high­est be­hind Aus­tralia’s S&P/ASX 200 in­dex and Pak­istan’s Karachi 100.

A2 led the mar­ket higher on the sec­ond­largest vol­ume, ris­ing 9.4% to $9.89, as 1.7 mil­lion shares changed hands. Spark was the most ac­tive stock, with 3.5 mil­lion shares traded, and gained 0.9% to $3.86.

Blue­chip stocks dom­i­nated trad­ing vol­umes. Merid­ian En­ergy was up 2.2% at $3.21 on 1.7 mil­lion shares traded. Mer­cury gained 0.3% to $3.29 on a vol­ume of 1.7 mil­lion shares and Auck­land Air­port rose 3.5% to $7.055, as 1.6 mil­lion shares changed hands.

Air New Zealand fell 0.7% to $2.86 on a vol­ume of 1.6 mil­lion shares, its low­est close since May 2017. Kiwi Prop­erty Group de­clined 0.4% to $1.35 on vol­ume of 1.3 mil­lion shares.

NZX fell 1.9% to $1.05, the big­gest de­cline on the NZX 50, and in heav­ier trad­ing than usual. The stock mar­ket op­er­a­tor is fac­ing a chal­lenge from share­holder El­e­va­tion Cap­i­tal over its board make­up and long­term strat­egy.

Out­side the bench­mark in­dex, Abano Health­care rose 1.9% to $8.15 on lighter than nor­mal trad­ing. Share­holder Fisher Funds Man­age­ment yes­ter­day dis­closed it sold its 8.8% stake in the med­i­cal in­vestor.

Pa­cific Edge climbed 14% to 33c af­ter re­ceiv­ing its pre­lim­i­nary re­im­burse­ment rate un­der the US Cen­tres for Medi­care and Med­i­caid Ser­vices. The 1.4 mil­lion shares traded were more than seven times the 90­day av­er­age.

A The Aus­tralian share­mar­ket fin­ished flat af­ter its worst trad­ing week in al­most three years.

The bench­mark S&P/ASX200 in­dex was up 11.9 points, or 0.2%, at 5895.7 points, while the broader All Or­di­nar­ies was up 13 points, or 0.22%, at 6006.5.

The SPI200 fu­tures in­dex was up 29 points, or 0.5%, at 5854, while the Aus­tralian dol­lar was buy­ing US71.26c from US70.70c on Thurs­day.

Rakuten Se­cu­ri­ties Aus­tralia chief op­er­at­ing of­fi­cer Nick Twidale said there had been some con­sol­i­da­tion dur­ing yes­ter­day’s ses­sion but warned all the in­flu­ences seen over the past few days were still rel­e­vant.

In­vestors watch­ing the forth­com­ing US ses­sion would be fo­cus­ing on the news about re­main­ing con­cerns over US­China re­la­tions, as well as the dis­con­nect be­tween the US Fed­eral Re­serve and po­lit­i­cal ex­ec­u­tive, Mr Twidale said.

There were two sce­nar­ios, he said. Ei­ther there would be a small cor­rec­tion on US mar­kets, the US dol­lar would come off and stocks sta­bilise — with some profit­tak­ing ahead of the week­end soft­en­ing volatil­ity.

Or the US mar­ket would fail to cor­rect and Aus­tralian stocks would fall with lower liq­uidi­ties and cur­ren­cies, in­clud­ing the yen, NZ dol­lar and Foot­sie, all go­ing top­side.

‘‘If any­thing hap­pens over the week­end it’ll be a very nasty start to the next week,’’ he said. — Busi­nessDesk/AAP

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.