Market commentary
WELLINGTON: The New Zealand sharemarket had a late turnaround on a burst of trading as it moved back into positive territory but investors have largely headed for the sidelines, awaiting developments.
The S&P/NZX 50 Index closed 42.95 points or 0.33% ahead to 12,881.31, recovering from a low of 12,757.45. Across the Tasman, the S&P/ASX 200 Index had risen 1.21% to 6743.40 at 5.45pm NZ time.
The NZ dollar settled at US71.42c against the greenback, after trading as low as US71.03c during the day, providing some respite for local exporters.
On the local market, there were 81 gainers and 61 decliners on improved volume of 74.65 million shares, worth $247.52 million. The volume was boosted by heavy trading in the S&P/NZX 50 Exchange Traded Fund units, 18 million of which, worth $50.18 million, were transacted. Trading in market leaders Meridian and Fisher and Paykel Healthcare totalled $56.80 million.
Jeremy Sullivan, investment adviser with Hindin Hamilton Greene, said investors were sitting on the sideline waiting for the big earnings announcements in the United States and New Zealand. They will make their decisions on what they see.
The energy stocks, going through a price revaluation, continued to drag on the market. Contact fell 29c or 3.16% to $8.89, having fallen from $10.75 on January 8. Mercury declined 35c or 5.07% to $6.65, after reaching $7.385 on January 8. Meridian was unchanged at $7.44, well down from its high of $9.40, struck on January 7. Genesis Energy was up 8c or 2.22% to $3.68.
Two other market favourites had better days. Fisher and Paykel Healthcare rose 46c or 1.46% to $31.88, and a2 Milk gained 26c or 2.42% to $11.01.
Ebos Group was also up 25c to $28.75, Mainfreight gained $1.29 or 1.98% to $66.30, Freightways increased 7c to $10.47 and Serko climbed 19c or 3.42% to $5.74.
The duallisted banks rose. ANZ Banking Group increased 64c or 2.45% to $NZ26.77 and Westpac Banking Corporation moved 67c or 2.94% to $NZ23.49. Another blue chip stock, Port of Tauranga, rose 19c or 2.54% to $7.68.
Mr Sullivan said the banks’ debt had been reaffirmed at AAA, they had received analysts’ upgrades and they were starting to pay dividends. They were not as worried about defaults as they were six or seven months ago.
Property stocks also rose. Kiwi Property was up 2.5c or 2.02% to $1.26, and Precinct Properties also gained 2.5c to $1.70.
Auckland International Airport continued to fall, down 6.5c to $7.27, and Air New Zealand slipped 2.5c to $1.685. Restaurant Brands was down 21c or 1.81% to $11.37 in another topsyturvy day. Summerset Group Holdings lost 10c to $11.94. —