Market commentaries

WELLINGTON: New Zealand shares dipped from a record as the uncertain outcome of USChina trade talks weighed on investor sentiment.

The S&P/NZX 50 Index decreased 4.98 points, or 0.05%, to 10,099.37. Within the index, 22 stocks fell, 20 rose, and eight were unchanged. Turnover was $108.7 million.

Stocks across Asia were mixed as US and Chinese trade negotiations entered their final phase.

China’s Shanghai Composite Index was up 1.4% in afternoon trading and Japan’s Topix was down 0.1%.

‘‘It’s relatively calm, given it could be quite a significant 24 hours ahead,’’ Mark Lister, head of private wealth research at Craigs Investment Partners, said.

‘‘The next move depends on what comes out of the US trade talks over the next day or so.’’

Mr Lister said he would expect equity markets to be sold off if a deal could not be reached. New Zealand was holding up better than most as low interest rates and a weaker currency helping offset slowing growth.

Synlait Milk led the market lower, down 2.9% at $10.20 on a volume of 152,000 shares, more than its 90day average of 110,000. Synlait was caught out by a Court of Appeal judgement that effectively meant its new Pokeno factory was built in breach of covenants affecting Synlait’s land. The company said it was confident it could resolve the issue.

A2 Milk, which counts Synlait as a supplier, fell 0.6% to $15.97 on a volume of 571,000 shares.

Infratil shares were halted at $4.60 after its manager Morrison & Co confirmed it was in talks with another firm to potentially buy Vodafone New Zealand. The trading halt will lift when an announcement is made or on Tuesday morning.

Stock market operator NZX fell 1.9% to $1.60 on 1.2 million shares, more than five times its 232,000 average.

Spark New Zealand, the country’s biggest telco, fell 0.7% to $3.62 on a volume of 2.1 million shares, less than half its 5.7 million average.

Vital Healthcare Property Trust posted the biggest gain on the day, up 7.6% at $2.28, the highest since August. The volume of 748,000 units was more than twice its 280,000 threemonth average.

The property trust’s manager said Vital would not participate in a $A1.26 billion deal to buy freehold hospitals in Australia, and that its chief executive David Carr had resigned.

Exporters benefited as the kiwi dollar stayed below US66c. Vista Group International rose 3.6% to a record $5.70 on a volume of just 66,000 shares, less than a quarter of its usual volume. Pushpay Holdings jumped 5.8% to $3.99 on a volume of 1.1 million shares, more than twice its 90day average of 461,000.

Tourism Holdings rose 2.7% to $4.15 and Auckland International Airport increased 2.1% to a record $8.42, valuing it at $9.97 billion.

Retailers were mixed. Briscoe Group was up 0.3% at $3.30, Hallenstein Glassons up 0.6% at $4.88, and Kathmandu Holdings down 0.9% to $2.18.

Higher petrol prices were also cited for the increased spending. Transport fuels operator Z Energy fell 0.5% to $6.18 on a volume of 986,000 shares, just shy of its 1.2 million average.

IkeGPS jumped 16% to 58c after signing up two major US telecommunications customers to its IKE Analyze service.

Seeka dropped 7.6% after the kiwifruit grower cut earnings guidance as unseasonable weather on both sides of the Tasman reduced fruit size and crop volumes.

Heartland Bank’s 2024 bonds paying 3.55% annual interest were the most traded debt security, with 320,000 notes changing hands. The yield on the bonds ended the day at 3.44%, up 1 basis point. Shares of the parent Heartland Group fell 0.6% to $1.58.

The Australian sharemarket finished up slightly in choppy trading as investors kept a wary eye on developments in USChinese trade talks.

The benchmark S&P/ASX200 index closed up 15.6 points, or 0.25%, to 6310.9 points yesterday, while the broader All Ordinaries finished up 15.8 points, or 0.25%, to 6393.1.

Overall the ASX200 finished the week down 0.39%, its second straight losing week.

All sectorswere higher except for miners, which were flat. The defensive utilities sector led the way, collectively up more than 2%.

Spark Infrastructure was up 3.64% to $2.28, AGL Energy was up 2.14% to $22.96 and Infigen Energy was up 4.6% to 45.5c.

BHP was down 0.49% to $36.80 while Fortescue Metals gained 1.07% to $7.54. — BusinessDesk/ AAP

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