Local market resilient as Australia’s falls

The New Zealand sharemarket proved resilient as its Australian counterpart fell sharply with its dominant resources sector being hit by the volatile commodity prices.

The S&P/ASX 200 Index had fallen 1.86 per cent to 7334.4 points at 5.45pm NZ time, while the S&P/NZX 50 Index fared better, declining 95.21 points or 0.8 per cent to 11,813.18 at the close. There were 99 decliners and 38 gainers on the local market with 56.67 million shares worth $175.18 million changing hands.

Matt Goodson, managing director of Salt Funds Management, said the market put in a solid performance given the weakness overseas and a sharp sell-off in Australia.

“There is a concern over a China slowdown partly due to the lockdowns, and the Chinese currency has fallen sharply. Tighter monetary policy decisions are feeding through to slower economic growth and commodity prices are down,” Goodson said.

On the Australia market, BHP was down 5.28 per cent to A$45.92 ($49.93); Fortescue Metals had fallen 6.45 per cent to $19.85 ($21.58); and Rio Tinto had declined 3.66 per cent to $109.44 ($119).

Locally, Pushpay Holdings — which has an online donor management system for churches and others — provided excitement on takeover speculation. Pushpay surged 25c or 24.27 per cent to $1.28 on volume of 4.28m shares worth $5.4m. Vulcan Steel rose 36c or 3.61 per cent to $10.33 after reporting a 34 per cent year on year increase in revenue at the nine month mark ending March.

Steel & Tube benefitted from the Vulcan upgrade, rising 8c or 5.41 per cent to $1.56.

Fisher and Paykel Healthcare was down 38c to a new low of $21.91;

Auckland International Airport declined 12c to $7.73; Mainfreight shed $1.59 or 1.98 per cent to $78.91;

a2 Milk decreased 13c or 2.58 per cent to $4.90; and Synlait was down 7c or 2.03 per cent to $3.38.

Air New Zealand rights finished trading at 70c, down 3.8c or 5.15 per cent, while the ordinary shares declined 0.005c to 89c.

The leading banks were down, ANZ Banking Group declining 31c to $30.15, and Westpac Banking Corporation falling 51c or 1.92 per cent to $26.01. Chorus declined 10c to $7.29. Contact Energy decreased 15c or 1.85 per cent to $7.96 after global investment manager BlackRock Inc reduced its shareholding to 4.925 per cent, from 6.147 per cent.

Michael Hill International, down 2c to $1.27, is selling its in-house Canadian credit receivables to Flexiti Financial Inc. Wine exporter Delegat Group decreased 38c or 2.95 per cent to $12.50; Restaurant Brands was also down 38c or 2.92 per cent to $12.62.

Amongst the gainers, Briscoe Group increased 7c to $5.83; Accordant Group rose 16c or 8.47 per cent to $2.05; My Food Bag gained 4c or 4.3 per cent to 97c; and Scott Technology was up 6c or 1.95 per cent to $3.13.

Carpet maker Bremworth rose 3c or 4.84 per cent to 65c after telling the market it has received co-funding from the Government Investment in Decarbonising Industry Fund for its Napier and Whanganui plants. Marlborough Wine Estates Group’s harvest is 12 per cent bigger than expected and is forecasting net profit of $300,000-$400,000 for the 2022 financial year — compared with a loss of $600,000 in the previous year. It was up 0.005c or 2.13 per cent to 24c.