NZ sharemarket falls over Brexit uncertainty
New Zealand shares fell as Brexit worries and a lack of earnings news left investors with a lack of direction. Three top-50 stocks also went ex-dividend yesterday.
The S&P/NZX 50 index fell 16.19 points, or 0.2 per cent, to 8809.70. Within the index, 23 stocks fell, five were unchanged and 22 rose. Turnover was modest at $90.1 million.
US stocks rose as investors bet the risks of slower growth are fully priced in after five days of declines. The political fallout increased in the UK from draft Brexit deal, while mixed signals continued on the prospects of meaningful trade talks between the US and China at the end of the month.
Bryon Burke, head of equities at Craigs Investment Partners, said intra-day ranges in the US markets remained high and that was a sign of uncertainty. While the US had its own issues, the Brexit debate was getting a lot of attention here. It may not have immediate effects on New Zealand but it did have big implications for Europe and would affect all markets, he said.
“I’m guessing the Asians don’t think about it that much, but it does affect money flows around the world.”
Spark New Zealand was again the most heavily traded stock with almost 3.2 million shares changing hands. It rose 0.6 per cent to $4.20. The only other top-50 stocks to better a million shares traded were Fletcher Building and a2 Milk Co.
Fletcher Building rose 0.7 per cent from a seven-month low to $5.67. Almost 1.9 million shares changed hands.
A2 Milk rose 0.3 per cent to $10.17. Almost 1.6 million shares were traded. Kathmandu was the biggest decliner after going ex an 11c final dividend. The stock fell
7.8 per cent to $2.61. Ryman Healthcare fell
4 per cent to $11.42 on light volume. Market operator NZX was the biggest gainer, up 2 per cent at $1.04. The company yesterday said it signed up its first customer for its wealth technologies platform.
Meridian Energy and Pushpay Holdings each rose 1.6 per cent to $3.24 and $3.25 respectively. Pushpay will be added to the MSCI small cap index at the end of the month. Freightways, which is making room for Pushpay in the index, rose 0.9 per cent to $7.09, having plunged 6 per cent on Wednesday when the move was announced.
Mainfreight rose for a third day, up 0.2 per cent at $31.05, after delivering a betterthan-expected 32 per cent increase in firsthalf profit to $55.7 million on Wednesday.
Burke said Mainfreight was now a truly international business and was possibly still cheap on a comparative basis.
Precinct Properties NZ fell 0.4 per cent to $1.41 as entitlements ended to its 1.5c interim dividend. Property for Industry fell 0.6 per cent to $1.70 as entitlements ended to its 1.85c interim dividend.