Market commentary
AUCKLAND: Ryman Healthcare stood out like a beacon as the beleaguered New Zealand sharemarket fell more than 1% following another dive on Wall Street.
The S&P/NZX 50 Index recovered in the afternoon but closed down 152.24 points, or 1.34% to a twoyear low 11,229.45, after hitting an intraday 11,149.48. The index has now fallen 4.48% in the past three trading days.
There were only 16 gainers, one of them Ryman, and 131 decliners over the whole market, 68.56 million shares worth $158 million changing hands.
The Australian S&P/ASX 200 Index had fallen 1.22% to 7033.9 points at 6pm (NZ time). The NZ dollar was at US63.37c against the American greenback after falling to an intraday low of US62.82c.
Matt Goodson, managing director of Salt Funds Management, said the Australian and New Zealand markets lifted off their lows and US futures pointing to a stronger night on Wall Street — S&P 500 futures was up 0.5% and Nasdaq Composite up 0.8%.
‘‘Markets are waking up to the fact there isn’t any central bank backstop of economic stimulus. That has been removed and in the short term there is sentiment that markets are in oversold territory.
‘‘But longterm interest rates have risen and central banks are still lifting them, and that’s what the markets are reacting to. The Chinese lockdown and the Ukraine war are exacerbating the inflationary pressures,’’ Mr Goodson said.
The S&P 500 went under the 4000 points mark for the first time in 13 months, falling 3.2% to 39091.24. It was at 3972.89 points on March 31 last year.
The Dow Jones Industrial Average declined 1.99% to 32,245.70; and the distraught Nasdaq Composite was down 4.29% 11,623.25. The Nasdaq has fallen 10.7% over the last 10 trading days.
At home, Ryman Healthcare, which has been among the battered stocks, recorded the day’s biggest single rise, gaining 56c or 6.74% to $8.87 and climbing off its low of $8.31. It hit a high of $15.80 on September 6 last year.
Ryman — there is concern over its debt level — has been hampered by a slowing housing market like the other retirement village operators. Summerset Group Holdings was down 21c, or 1.96%, to $10.49, and Arvida Group declined 3c, or 1.97%, to $1.49.
Beating back the sea of red, Mercury Energy was up 14c, or 2.48%, to $5.79, and Skellerup Holdings increased 13c, or 2.4%, to $5.55.
Property companies were softer. Argosy was down 3.5c, or 2.75%, to $1.24; Property for Industry declined 5c, or 2.01%, to $12.44; Stride fell 5c, or 2.78%, to $1.75; and Kiwi Property decreased 2c, or 1.95%, to $1.1005.