Shares ease back from record
Trustpower the big gainer on mixed day for stockmarket
Our market was very strong on Wednesday, there was quite significant buying . . . Matt Goodson, Salt Funds Management
New Zealand shares were mixed, with Trustpower and Infratil both rising, while Heartland Bank and Freightways dropped.
The S&P/NZX 50 Index dipped 7.48 points, or 0.09 per cent, to 8600.81.
Within the index, 23 stocks rose, 19 fell and eight were unchanged. Turnover was $142 million.
“Our market was very strong [on Wednesday], there was quite significant buying across the leaders and that has pulled back a little [yesterday] in most but not all,” said Matt Goodson, managing director at Salt Funds Management.
The benchmark index surged 1.4 per cent on Wednesday to a record.
Trustpower jumped 7.7 per cent to $5.60, a two-month record, making it the best performer.
The Tauranga Electricity Consumer Trust has abandoned plans to become a funder for Bay of Plenty community projects after strong pushback from customers of locallyheadquartered Trustpower, who prefer to receive an annual cheque that helps offset their personal power bills.
The trust had considered becoming a community projects funder but dropped the idea after considering some 21,000 written submissions.
Trustpower’s shares dropped when the trust, which owns 26 per cent of the company, proposed ditching the rebates in January, and Trustpower’s chief executive said it would take legal advice on the matter.
“It was definitely the highlight of the day, and interesting the trustees did withdraw the proposal,” Goodson said.
Infratil gained 1.8 per cent to $3.14.
Heartland Bank was the worst performer, down 2.2 per cent to $1.78.
Freightways closed down 1.8 per cent at $7.54 and Ryman Healthcare dropped 1.4 per cent to $10.95.
The Australian sharemarket closed lower after the US central bank lifted interest rates and forecast further hikes in the years ahead.
The benchmark S& P/ ASX200 index dropped 0.2 per cent to 5,937.2 points.
Gains among energy and materials stocks were offset by weakness in all other sectors.
The US Federal Reserve has lifted its benchmark overnight lending rate by a quarter of a percentage point, and forecast at least two more hikes for 2018.