Market commentaries

AUCKLAND: New Zealand shares fell yesterday, power companies generally flat on large volumes after Wednesday’s savaging.

The S&P/NZX 50 Index decreased 22.27 points, or 0.2%, to 10,831.52. Within the index, 22 stocks fell, 17 rose and 11 were unchanged. Turnover was $143.9 million, of which the four big electricity suppliers accounted for $65.8 million.

Chorus led the market lower, down 2.4% at $5.32 on a volume of 248,000 shares, less than half its 90day average of 537,000. Trustpower was down 1.7% at $8.20, Kiwi Property Group fell 1.2% to $1.65 on a volume of 1.1 million shares, and Precinct Properties New Zealand decreased 1.1% to $1.86.

The electricity generatorretailers traded on large volumes but were relatively flat following a sharp selloff on Wednesday, when NZAS said the future of its Tiwai Point site — the country’s biggest electricity user — was under review. Contact Energy was unchanged at $7.69 on a volume of three million shares, having shed 9.7% on Wednesday. Meridian Energy was also unchanged at $4.95 with 4.7 million shares changing hands — it sank 8.7% on Wednesday.

Mercury NZ increased 0.5% to $5.02 on a volume of 3.2 million shares and Genesis Energy rose 1% to $3.09 on a volume of 1.2 million.

Matt Goodson, managing director at Salt Funds Management, said it appeared the smelter’s cash costs were below the current aluminium price, but that investors were grappling with the reality of the situation.

‘‘The market would view the most likely outcome as being a negotiation and some form of lower power price, but there’s no certainty around that at this stage,’’ he said.

Strong demand among investors for reliable dividends had pushed the power companies to record highs and buoyed similarly defensive stocks, such as property companies and utilities.

Mr Goodson said that was further complicated by an upcoming MSCI index reweighting, which was expected to include Mercury in the index and remove Fletcher Building. Fletcher shares fell 1.1% to $4.66 on a volume of 2.2 million shares.

‘‘The sharemarket at the moment has an awful lot of term deposit and bond investor refugees in it — they’re investors who are there because there is no alternative to find some yield anywhere, and it’s a reminder that when you buy equities you take equity risk,’’ Mr Goodson said.

A The Australian sharemarket closed higher for a fourth day yesterday, buoyed by energy stocks as the price of crude jumped higher.

The benchmark S&P/ASX200 index finished up 20.5 points, or 0.31%, at 6693.6, while the broader All Ordinaries was up 18.5 points, or 0.27%, at 6796.7 points.

Woodside Petroleum jumped 2.4%, Santos added 2.3% and Oil Search gained 1.1% as the price of crude gained 3% overnight on a surprise dip in US inventories.

Mining giant BHP, also a petroleum producer, climbed 1% to $A35.75 ($NZ38.2), while Rio Tinto gained 0.7% to $A90.39 as iron ore and copper also rose.

The four big banks were mixed, Commonwealth gaining 0.4% to $A80.29 and NAB up 0.5% at $A29.01.

But ANZ and Westpac both dropped by A1 cent, to $A27.88 and $A28.90, respectively.

Macquarie Group was up 1.4% at $A133.87. —

BusinessDesk/AAP