Market commentary
WELLINGTON: With Auckland on holiday, the New Zealand sharemarket drifted lower on the back of a weak end to the week in the US, despite recovering late in the day on positive signs from Asia.
The NZX50 briefly dropped below 13,000 just after noon, but eventually pared the losses to close down 30 points at 13,097.25, on a day of light trading and no significant company announcements.
Mark Lister, head of private wealth research at Craigs Investment Partners, said with little corporate news, the New Zealand market was driven by what was happening offshore, where Wall Street closed lower on Friday.
As well as frayed nerves in the US, caused by volatile trading in companies such as GameStock, economic data from China showed the rate of expansion in the manufacturing sector, while still positive, was slow.
US futures pointed higher, having been lower throughout the day, suggesting gains on Wall Street overnight.
Markets in Asia opened higher on Monday, dragging the New Zealand market higher.
‘‘The Asian markets have been pretty strong. They’ve dragged the Aussie market positive and the New Zealand market has improved throughout the day,’’ Hamilton Hindin Greene investment adviser Grant Davies said.
Digital donor management software company Pushpay was among the strongest gainers, climbing 7c to $1.72. Vista Group was also stronger, climbing 5c to $1.54.
Retirement care company Ryman Healthcare was stronger throughout the session, closing up 16c at $15.72. Elsewhere in the sector, Arvida climbed 3.3% to $1.85, Oceania gained 1c to close at $1.59, while Summerset fell 17c to close at $12.
Market leader Fisher & Paykel Healthcare dropped more than 3%, closing at $33.51.
Restaurant Brands dropped 5c to $11.70. Forsyth Barr said while the Restaurant Brands had shown robust sales growth in the fourth quarter of 2020, lower future growth expectations meant analysts were trimming their target price on the owner of KFC and Pizza Hutt owner to $12.75.
Shares in honey exporter Comvita were unchanged at $3.20, despite Jarden raising its target price.
As part of a wider review of the New Zealand agriculture sector, Jarden raised its target price for Comvita by 35c to $3.35, following strong export data.
Skellerup, which also had its target price raised by Jarden, dropped 5c to $3.84.
Infrastructure investor Infratil climbed 23c to $7.43, making up some of the 6% the shares dropped on Friday, as investors awaited news of possible takeover moves from across the Tasman.
Air New Zealand climbed 4c to $1.63.
Contact was the top performer in the electricity sector, closing up 3.4% at $8.45. Meridian rose 3c to $7.18, Mercury dropped 3c to $7.09.5, Genesis Energy dropped 4c to $3.88 and Trustpower closed unchanged at $3.88. —