Blue-chip stocks weaker as market falls
A2 Milk and Ryman lead decline in quiet start to week
New Zealand shares fell in light trading as blue-chip stocks including A2 Milk Co, Ryman Healthcare and Fletcher Building followed Australia lower.
Fisher & Paykel Healthcare gained after reporting increased earnings.
The S&P/NZX 50 index decreased 39.01 points, or 0.4 per cent, to 8,662.37. Within the index, 24 stocks fell, 18 gained and eight were unchanged. Turnover was $85.7 million, quieter than usual.
Trading was relatively subdued after the Thanksgiving holidayshortened week in the US left markets slightly weaker on Friday. Stock markets across Asia were mixed yesterday, although New Zealand moved lower with Australia, where the ASX 200 index was down 0.9 per cent in afternoon trading.
Blue-chip stocks led the market lower, with down 3.1 per cent to $10.20 on less than half its average volume. The milk marketing firm is the most volatile stock on the NZX 50 on a close-to-close basis, with much of its activity driven out of Australia. Ryman was down 3.9 per cent to $11.03 on smaller volumes than usual. Fletcher fell 0.6 per cent to $4.66 on average volume of 1.5 million. “We've started the week on a weaker note,” said Grant Williamson, a director at Hamilton Hindin Greene. “Most of the blue-chips are a little bit weaker — particularly A2, although that's a pretty volatile company.” F&P Healthcare gained 1.8 per cent to $13.30 after it lifted first-half profit 20 per cent and affirmed annual earnings growth. The breathing mask maker said second-half earnings will rely in-part on how many people in the Northern Hemisphere get the flu.
Sky Network Television climbed 4.4 per cent to $2.40 after announcing veteran British media executive Martin Stewart will take over as chief executive from February next year. That was the biggest gain on the day, in lighter than usual trading. Restaurant Brands New Zealand
increased 1.8 per cent to $8.60. Suitor Finaccess Capital plans to mount a partial takeover bid at $9.45 a share and has entered into a lock-up arrangement with director Stephen Copulos who owns about 8.6 per cent.
Spark New Zealand was the most active stock, up 0.3 per cent at $4.085 on volumes of 2.5 million shares.
Kiwi Property Group was unchanged at $1.38 on a volume of 1.2 million shares, and Meridian Energy decreased 0.5 per cent to $3.17.
Heartland Group rose 0.7 per cent to $1.48 on volumes of one million shares, about three times its average. The lender recently restructured its business to separate its licensed banking unit and Australian reverse mortgage division. Metro Performance Glass
slumped 25 per cent to a record close of 40 cents after reporting weaker first-half earnings, trimming annual guidance and suspending dividend payments.
Eroad dropped 8.1 per cent to $2.50 after reporting a narrower firsthalf loss.
March and September company earnings continue today with Arvida
Group and Turners Automotive, which were respectively unchanged at $1.30 and up 3.4 per cent at $2.72.
Motor Trade Finance, which counts Turners as a shareholder, reported a 9.3 per cent increase in annual earnings. The auto-lender has listed preference shares on the NZX debt market, which were unchanged at 64 cents.