Market commentary

WELLINGTON: Mainfreight dominated trading on the New Zealand sharemarket after it was revealed that its chairman Bruce Plested sold $75 million worth of shares in the transport and logistics company.

Despite continued strong volume of transactions overall, the S&P/NZX 50 Index drifted, closing on its low for the day at 12,518.01, down 48.49 points, or 0.39%. Its intraday high was 12,587.68 points.

There were 76 gainers and 67 decliners, and 50.85 million shares worth $278.23 million changed hands. Nearly a third of the trading value was in Mainfreight, which fell $1.80, or 2.33%, to $75.30.

A notice showed Mainfreight founder Mr Plested sold 1 million shares offmarket for $75 million through Rorohara No 2 Trust. The trust now has a 14.83% shareholding in Mainfreight, down from 16.29%.

a2 Milk’s recovery ran out of puff after falling 18c, or 2.93%, to $5.97, affected by a competitor’s comments in China. Feihe, China’s largest infant formula maker, said sales would drop in the next one to two years since many women cannot bear children within six months of Covid19 vaccination. Synlait Milk, which supplies a2, fell 9c, or 2.5%, to $3.51.

The broad rally seen over the previous three trading days also petered out. Market leader Fisher & Paykel Healthcare was down 5c to $29.30; Ebos Group fell 56c to $32.74; Chorus decreased 10c to $6.55; Freightways declined 15c to $11.90; and Skellerup Holdings shed 13c, or 2.78%, to $4.55.

Briscoe Group was down 11c, or 1.91%, to $5.65; Air New Zealand lost 3.5c, or 2.11%, to $1.62; and Scott Technology shed 9c, or 3.5%, to $2.48.

SkyCity Entertainment rebounded 10c, or 2.9%, to $3.55; Serko gained 30c, or 4.23%, to a new high of $7.40; and Tourism Holdings increased 4c to $2.57.

Ryman Healthcare increased 28c or 2.17% to $13.18; Turners Automotive picked up 14c or 3.33% to $4.34; and NZX was up 5c or 2.44% to $2.10.

Meal kit company My Food Bag rose 6c, or 4.26%, to $1.47 after telling the market it would use social enterprise firm GoGo’s carbon footprint tracker app.

The High Court has backed the sale of Tilt Renewables to Powering Australian Renewables (for the Australian business) and Mercury Energy (the New Zealand business); Tilt shareholders will meet on July 14 to vote on the deal worth $8.10 a share. Tilt’s share price rose 2c to $8.02. —