Market commentaries
AUCKLAND: New Zealand shares fell, as investors continued to assess the impact of Rio Tinto’s threat to close the Tiwai Point smelter. However, property stocks had a strong day, led by Vital Healthcare Property Trust.
The S&P/NZX50 50 Index declined 26.13 points, or 0.2%, to 10,761.69. Within the index, 29 stocks fell, 15 rose and six were unchanged. Turnover was $117.2 million
Vital Healthcare Property Trust led property stocks higher, lifting by 1.5% to $2.70, as 200,000 shares changed hands. Ryman Healthcare rose by 1.4% to $13.09, while Argosy Property lifted 1.5% to $2.70 and Precinct Properties New Zealand gained 1.4% to $1.85. Kiwi Property Group was unchanged at $1.59, having raised $180 million at $1.58 per share earlier this week.
‘‘Property has been relatively robust and I suppose that’s the reliable income stream, as most are paying a quarterly income,’’ Craigs Investment Partners adviser Chris Timms said, adding that retirement village operator Ryman benefited from a respite in the North Island property market, especially.
‘‘It has been reasonably quiet day, considering Meridian has only traded about 1.5 million shares, compared with 3 million over the last few days,’’ Mr Timms said.
Contact Energy was the worst of the electricity generatorretailer stocks, falling by 2.3% to $7.21. Trustpower was down 1.5% at $8.31, Mercury fell 1.3% to $4.90 and Meridian was down by about 1.7% at $4.52.
‘‘There was a flurry since the [Tiwai Point] announcement and a lot of the impetus has been taken out and people have decided to move on and have done so,’’ he said.
‘‘All of the gentailers have been relatively light today but still weaker.’’
Vista Group International was the day’s biggest decliner, falling by 3.1% to $3.78, although on relatively light volumes, as fewer than 100,000 shares traded hands, compared to its 90day average of 449,000.
Bank stocks also fell. Australia and New Zealand Banking Group was down by 1.7% at $28.30 after it said on Thursday New Zealand net profit fell 8% to $1.83 billion in the 12 months ended September 30. Westpac Banking Group, which reports next week, fell by 0.5%.
Sky Network Television declined by 1.1% and closed at 89c, having lost about half its value so far this year.
Yesterday, the payTV operator revealed more detail about the 5% stake it gave NZ Rugby in order to secure broadcasting rights. Sky issued 21.8 million shares at 92c per share, valuing the stake at $20.07 million. The deal also includes a condition that NZ Rugby must give at least 10 working days notice if it wants to sell the shares after the agreed twoyear minimum period.
Shares of Kathmandu Holdings dipped 0.3% to $3.13. The company said yesterday group chief operating officer Reuben Casey will head the Kathmandu business following its $368 million acquisition of Rip Curl, while Michael Daly will remain head of the Rip Curl business. Group chief executive Xavier Simonet continues as head of the whole group.
Shares of Skellerup declined 1.3% to $2.27. The rubber goods maker announced yesterday it purchased UK based Silclear for £3.3 million ($NZ6.65 million), in a deal which it said would be immediately earnings accretive.
Scott Technologies rose by 3.4% to $2.45. This week the government announced the Dunedinbased company will receive a $5.8 million loan from the Provincial Growth Fund to set up an agriculture technology business unit.
A The Australian sharemarket finished marginally higher, despite losses by the heavyweight financial sector.
The benchmark S&P/ASX200 index finished up 5.7 points, or 0.09%, to 6669.1 points, while the broader All Ordinaries was up 6.2 points, or 0.09%, to 6779.1 points.
For the week, the market was down 70 points, or 1.04%, however.
ANZ led the big four banks lower, down 2.1 per cent to $26.19, Westpac fell 1.2% to $27.88, NAB dropped 0.7% to $28.41 and Commonwealth fell 0.5% to $78.24.
Macquarie Group rose 0.3% to $134.38, after it lifted firsthalf profit 11% to $1.46 billion but warned fullyear profit was likely to be lower. — BusinessDesk/AAP