Sharemarket lower amid US-China concerns

New Zealand shares dipped from a record as the uncertain outcome of the US-China trade talks weighed on investor sentiment.

The S&P/NZX 50 index dropped 4.98 points, or 0.05 per cent, to 10,099.37. Within the index, 22 stocks fell, 20 rose, eight were unchanged. Turnover was $108.7 million.

Stocks across Asia were mixed as investors waited as US and Chinese trade negotiations enter their final phase. “It’s relatively calm given it could be quite a significant 24 hours ahead,” said Mark Lister, head of private wealth research at Craigs Investment Partners. “The next move depends on what comes out of the US trade talks over the next day or so.”

Synlait Milk led the market lower, down 2.9 per cent at $10.20 on a volume of 152,000 shares. The milk processor has been caught out by a Court of Appeal judgment that effectively means its new Pokeno factory was built in breach of covenants affecting Synlait’s land. The company said it’s confident it can resolve the issue.

A2 Milk, which counts Synlait as a supplier, fell 0.6 per cent to $15.97 on a volume of 571,000 shares. Infratil shares were halted at $4.60 after its manager, Morrison & Co, confirmed it was in talks with another firm to potentially buy Vodafone New Zealand. The trading halt will lift when an announcement is made or on Tuesday.

Stock market operator NZX fell 1.9 per cent to $1.60 on 1.2 million shares, more than five times its 232,000 average. Spark New Zealand fell 0.7 per cent to $3.62 on a volume of 2.1 million shares. Vital Healthcare Property Trust posted the biggest gain on the day, up 7.6 per cent at $2.28.

Exporters benefited as the trade uncertainty helped keep the kiwi dollar below US66c. Vista Group International rose 3.6 per cent to a record $5.70 on a volume of just

66,000 shares. Pushpay Holdings jumped

5.8 per cent to $3.99 on a volume of 1.1 million shares.

Tourism Holdings rose 2.7 per cent to $4.15 and Auckland International Airport increased 2.1 per cent to a record $8.42, valuing it at $9.97 billion. SkyCity Entertainment Group was the most traded stock on a volume of 5 million shares, compared with its 640,000 average. The casino operator increased 0.3 per cent to $3.91.

Kiwi Property Group was unchanged at $1.535, Precinct Properties New Zealand rose 0.6 per cent to $1.59 and Goodman Property Trust was up 0.3 per cent at $1.735.