Sharemarket slips in thin holiday trade
Less taste for attractive dividend yields
New Zealand shares slipped in thin holiday trading as appetite declined for companies offering attractive dividend yields, such as regulated utilities Chorus and Genesis Energy and pay-TV operator Sky Network Television.
The S&P/NZX 50 index dropped 20 points, or 0.2 per cent, to 8376.43. Within the index, 25 stocks fell, 16 gained, and nine were unchanged. Turnover was a light $65.8 million. Electricity generator-retailer
led the benchmark index lower, falling 2.7 per cent to $2.46. Telecommunications network operator dropped 2.6 per cent to $4.16, power company fell 2.2 per cent to $3.355 and declined 2.1 per cent to $2.78. “Some of the interest-rate-sensitive stocks, such as Chorus, Mercury and Sky, are down — they’re the ones dragging the market down into the close,” said Shane Solly at Harbour Asset Management.
“What we’ve seen globally, led out of the US, is long-term bond yields creep up slightly from being very low,” Solly said, “and we’re seeing people think about what will happen
Genesis Energy cury NZ Sky TV Chorus Mer-
in the next 12 months.”
Still, he said, trading was very light because of the holiday period.
posted the biggest gain of the day, up 2.5 per cent to $2.145, followed by retirement village operator which rose 2.2 per cent to $5.50.
was up 2.1 per cent to $5.77. The rental campervan operator last week said it expected net profit to be boosted by US tax cuts. Fast food operator
gained 1.4 per cent to $7.15. Paymark figures yesterday showed retail spending increased 6.4 per cent on Boxing Day from a year earlier, with spending at fast-food outlets up 16 per cent.
the online auction site, fell 0.4 per cent to $4.78, while outside the benchmark index rose 1.8 per cent to $3.33, gained 1.5 per cent to $2.09
was unchanged at
Kiwi Property Group Trade Me,
and $2.40.
Summerset Group, Tourism Holdings Brands New Zealand Group Kathmandu Augusta Capital Restaurant Briscoe Group Warehouse
was unchanged at $1.065 per cent after the real estate funds management firm secured a second property for a planned industrial fund to be launched next year.
closed un-
AFT Pharmaceuticals
had fared better than previously thought. Figures yesterday showed consumers remain in good heart, with electronic spending on Boxing Day up 6.4 per cent this year, led by growth in department stores, appliance stores and home decorating, according to Paymark. The kiwi traded at A91.03c from A90.94c late Tuesday, outperforming the Aussie that got a lift when oil prices surged to a 21⁄ year high. News of an explosion on a Libyan crude changed at $2.39 after the drug-maker said it had licensed its Maxigesic painkiller to Mexico, the 125th licensed country for the drug.
Among leading stocks,
Fisher &
pipeline as well as voluntary Opecled supply cuts helped spur oil prices. The Australian dollar traded at US77.37c, the highest since late October. “It’s been very, very quiet” with the kiwi joining other currencies in sticking to a tight range in Asian trading, said Mark Johnson, a senior dealer at OMF. Any sustained move would need some sort of catalyst, which is unlikely in the short term given the dearth of data and the
Paykel Healthcare Auckland International
$8.16, was unchanged at $14.14, slipped 0.2 per cent to $6.56, gained 0.4 per cent to fell 0.5 per
Airport a2 Milk Co
Meridian Energy
holiday-shortened weeks, he said. Monetary policy will be the main driver of currency moves in 2018, according to strategists quoted by Bloomberg. The median sees the New Zealand dollar at about US72c by year-end, benefiting as emergency monetary policy settings are no longer needed. Daragh Maher, HSBC’s US head of FX strategy, was even more bullish and sees it at US75c as monetary policy is normalised. The kiwi traded at 79.78 yen from
Building Xero
$7.65.
Spark New Zealand Fletcher
cent to $2.915, was unchanged at $3.62 and dropped 0.4 per cent to fell 1 per cent to $31.40. ¥79.50 late Tuesday, after minutes from the Bank of Japan’s policy meeting showed a strong desire to maintain stimulus measures for the time being. The trade-weighted index was at 73.96 from 73.79. The kiwi rose to 4.6180 yuan from 4.5897 yuan. It was at 59.38 euro cents from €59.14c and traded at 52.67 British pence from 52.51p. The two-year swap rate rose 2 basis points to 2.21 per cent and the 10-year swaps also lifted 2 basis points to 3.17 per cent.