Market commentaries
WELLINGTON: New Zealand shares declined after a2 Milk fell on news of a new competitor in China’s infant formula market and as rising bond yields made dividend stocks less attractive.
The benchmark S&P/NZX 50 Index shed 82.36 points, or 0.8%, to 10,759.18. Within the index, 29 stocks fell, 14 rose and seven were unchanged. Turnover was $130.2 million.
A2 shares fell 46c, or 3.6%, to $12.30. About 646,000 shares changed hands, down from a daily average of about 740,000 the past three months.
‘‘The biggest weight on the market was a2 — that share price has been trending down for a wee while now. It’s really come off the boil since August,’’ Grant Williamson, at Hamilton Hindin Greene, said.
A2 shares peaked at $18.04 on July 31, although they are still 22% higher than a year ago.
Broking firm Citi says domestic Chinese infant formula company Junlebao, controlled by the Hebei provincial government, has gained State Administration for Market Regulation — SAMR — registration for its infant formula, which also contains only the A2 protein, and will be allowed for sale in offline retail channels, such as mother and baby specialty supermarkets.
Bucking the negative trend, Pushpay shares jumped 12c, or 3.8%, to $3.29 after it reported a $US6.5 million net profit for the six months ended September, a turnaround from the previous firsthalf’s $US4.4 million net loss.
Also bucking the trend, shares in Restaurant Brands rose 1.3% to $11.90 while shares in pharmaceuticals distributor Ebos climbed 2.8% to $25.45.
Mr Williamson said Restaurant Brands shares were thinly traded since Mexico’s Finaccess Capital took control of the company in a partial takeover last year.
He said while Ebos used to be regarded as a yield stock, it was now viewed more as a growth stock.
Ebos is expecting a significant increase in earnings this year with the Chemist Warehouse Group supply contract kicking in from July 1, which is expected to add about $1 billion to annual sales.
The company’s revenue was $6.9 billion in the year ended June.
Meridian Energy shares were unchanged at $4.60 after earlier dipping as much as 2.4%. Meridian is the Tiwai Point aluminium smelter’s major electricity supplier but, since the smelter takes about 13% of New Zealand’s electricity, its closure would release excess power that would take some time to absorb.
Rio Tinto has said the plant is struggling with global aluminium prices near a threeyear low.
Genesis Energy shares were down 0.8% at $3.155 and Mercury NZ shares sank 1.6% to $4.79.
Among other yield stocks, telecommunications network company Chorus shares shed 2.1% to $5.315, phone company Spark shares eased 1.9% to $4.38 and retirement village operator Ryman Healthcare fell 2.2% to $13.15.
The 10year swap rate edged up to a bid price of 1.5025% from 1.4900% yesterday.
A The Australian sharemarket has wiped out all gains from its threeday winning streak, and then some.
The benchmark S&P/ASX200 index, which had gained 33.7 points between Friday and Tuesday, on Wednesday closed down 36.9 points, or 0.55%, to 6660.2 points.
The broader All Ordinaries finished 38.4 points lower, or 0.56%, to 6773.2 points.
‘‘A bit ugly out there today,’’ said CMC Markets chief market strategist Michael McCarthy.
‘‘We have quietly underperformed for the past six or seven sessions.’’
The dip was particularly disappointing given the generally positive lead from Wall Street and a rally in commodity prices overnight, Mr McCarthy said, adding that it seemed like there was toplevel selling from institutional investors going on.
Every sector was lower save for materials, with industrials falling the most, 1.8%. — BusinessDesk/ AAP