Market commentary

WELLINGTON: Global operators Mainfreight and Rakon produced record earnings but this time the investors were wary as the New Zealand sharemarket dropped more than half a percent yesterday for the third day running.

The S&P/NZX 50 Index traded strongly for most of the day and then eased late afternoon to close at 11,102.84, down 70.53 points or 0.63%, after reaching an intraday high of 11,244.73.

There were 55 gainers and 88 decliners on the main board, 41.71 million shares worth $156.96 million changing hands.

Salt Funds Management managing director Matt Goodson said the local market ‘‘is a little bit heavy — the selling orders are dominating the buying orders, as has been the case for several months now’’.

‘‘The movement in Mainfreight was surprising given its strong result but I guess it had been foreshadowed and trading volume was light,’’ he said.

Global transport and logistics company Mainfreight finished $1 ahead at $76 on trade worth $5.03 million after announcing another record result for the year ending March.

Rakon declined 11c or 6.75% to $1.52 despite reporting record earnings for the year ending March. Market leader Fisher & Paykel Healthcare was down 35c at $19.55.

Ryman Healthcare, due to fall out of the MSCI global index this Tuesday, continued to climb, lifting 2.07% to $10.35.

AFT Pharmaceuticals was up 8c or 2% at $4.09; Chorus gained 11c to $7.32; Green Cross Health increased 5c to $1.35; Gentrack rose 5c to $1.60; and Chatham Rock Phosphate picked up a further 7c or 12.96% to 61c.

Insurer Tower was unchanged at 68.5c.

Among the energy companies, Contact was down 20c at $7.46; Mercury fell 20c to $5.60; and Genesis Energy was up 3c at $2.72.

Eroad plunged 8.72% to $2.72 after reporting a net loss of $9.62 million on increased revenue of $114.9 million for the year to March. Eroad has fallen from a high of $6.70 in July last year.

Other decliners were a2 Milk, down 12c or 2.48% at $4.72; Auckland International Airport, which dropped 9.5c to $7.255; Hallenstein Glasson, which fell 15c to $5.30; and Briscoe Group, which lost 13c to $5.86.

DGL Group fell 15c or 4.48% to $3.20; and SkyCity Entertainment was down 5c or 1.84% at $2.67.