Trump, Tiwai moves weigh on late trading

President Donald Trump’s latest action against China and confirmation that Rio Tinto was not re-opening the fourth aluminium potline at Tiwai Point dampened late trading on the New Zealand sharemarket.

The S&P/NZX 50 Index fell 117.91 points or 1 per cent to 11,646.68 — its biggest fall of the week. Trading was again light and 38.7 million shares worth $139.53m changed hands. There were 41 gainers and 88 decliners over the whole market.

President Trump issued executive orders prohibiting transactions with the Chinese owners of smartphone apps TikTok and WeChat, taking effect on September 20.

There has been a flurry of activity in the energy sector this week. Rio Tinto closed the fourth of its potlines at the Tiwai Point smelter to cope with restrictions caused by the Covid-19 lockdown and there was speculation that this would be re-opened.

The speculation came to nothing and then came suggestions that some electricity companies will soon be reducing their dividends.

Shane Solly, portfolio manager at Harbour Asset Management, said the Trump and Rio Tinto moves, late in the day, took “a bit of the tone out of the market”.

The energy stocks were up and down on heavy trading. Mercury moved ahead 10c or

2.13 per cent to $4.80 with $1.7m worth of its shares changing hands, while Contact Energy was down 19c or 3.02 per cent to $6.10 on $9.1m worth of trading and Meridian fell

2c to $4.98 on trading worth $8.7m.

Fisher & Paykel Healthcare fell $1.04 or

2.85 per cent to $35.41 with $28.2m worth of its shares changing hands. The a2 Milk Company was down 33c or 1.58 per cent to $20.52 on $6.8m worth of trading. The trade in the two heavyweights made up about a quarter of the volume on the market.

Westpac Bank fell 25c to $18.04 and ANZ slipped 5c to $19.05.

Dunedin-based Scott Technology, specialising in automation and robotics systems, reported it has been awarded a further multimillion-dollar contract by Rio Tinto to provide equipment for a new laboratory in Western Australia.

Scott Technology was one the day’s biggest gainers, climbing 10c or 5.88 per cent to $1.80. The other movers were Just Life — which announced increased profit — increasing 4c or 10.13 per cent to 43.5c, Cannasouth rising 2c or 3.77 per cent to 55c, and Pushpay Holdings lifting 20c or 2.56 per cent to $8.

Just Life Group, which supplies water coolers, announced an increase in unaudited profit before tax of $3.9m for the year ending June 30, compared with $2.6m last year.