Market commentary

WELLINGTON: The New Zealand sharemarket continued its meandering way yesterday, recording another small loss, while leading retirement village operator Ryman Healthcare had an up and down day.

The S&P/NZX 50 Index made another solid start in the morning but then petered out, closing down 19.78 points, or 0.18%, at 11,137.88 after reaching an intraday high of 11,177.34.

Trading was again relatively light with 38.47 million shares worth $131.06 million changing hands, and there were 62 gainers and 75 decliners across the whole market of 188 stocks. The NZX has been boosted by the addition of leading Australian company Ampol.

Forsyth Barr investment adviser Dan Stratful said the local market was continuing to trend lower, driven by inflation and economic uncertainty — and the reporting season was the next thing.

‘‘The likes of Infratil this week and Fisher & Paykel Healthcare and Mainfreight next week will be providing their latest annual results, which will be closely watched,’’ Mr Stratful said.

‘‘For some stocks the Covid tailwinds have provided a boost, but with Covid abating people will be paying more attention to how they benefit in normal trading conditions going forward.’’

ANZ Research forecast the Reserve Bank would next week deliver another 50 basis point rise in the official cash rate (OCR), to 2%. Inflation at 6.9% is well beyond the pale and broadbased, while the OCR at 1.5% is still stimulatory.

Mr Stratful said the surprise would be if the OCR increase was only 25 basis points. The 50 basis point rise was highly anticipated by the market.

Westpac Bank, up 19c at $27.11, expects house prices to fall another 10% this year and 5% next, after having already fallen 5% since November. This has provided uncertainty for retirement village operators.

Ryman Healthcare, which reports on Friday, rebounded 38c, or 4.39%, to $9.06 after falling 7.77% the day before. It has now declined 38.5% over the past 12 months. Fellow operator Arvida Group increased 5c, or 3.29% to $1.57.

Fisher & Paykel Healthcare was down 27c at $20.78; Delegat Group shed 23c to $12.47; Fletcher Building declined 16c to $5.85; Skellerup Holdings decreased 10c to $5.20; and Pushpay Holdings fell 5c to $1.21.

Travel and leisure stocks had a weak day as tourists head New Zealand’s way. Auckland International Airport was down 7c at $7.34; Air New Zealand declined 1.5c to 68c; Serko decreased 10c to $4.70; Tourism Holdings fell 10c to $2.60; and Vista Group shed 4c to $1.68.

Australian fuel distributor Ampol listed on the NZX with foreign exempt status following its takeover of Z Energy. It listed at $37.23 and there were just seven trades, worth $1763. —