Consumers’ downbeat mood rubs off on prices

Controversial transtasman chemicals company DGL Group provided all the noise on an otherwise quiet New Zealand sharemarket with its sudden move to delist from the NZX after 13 months.

The S&P/NZX 50 index slipped from a strong morning of trading — on a fall in the consumer confidence index — and closed the week at

11,065.15, down 37.69 points or 0.34 per cent. The index has fallen nearly

16 per cent so far this year. There were 72 gainers and 69 decliners over the whole market, with

29.27 million shares worth $112.21 million changing hands.

The ANZ-Roy Morgan Consumer Confidence Index fell 2 points to 82.3 in May, above its record low of 77.9 in March but still concerning.

“With real wages falling, interest rates rising, house prices and equities falling and Omicron still prevalent, consumers aren’t seeing much to feel happy about,” said ANZ chief economist Sharon Zollner.

Greg Smith, head of retail with Devon Funds Management, said consumers and their spending were in the spotlight. “The market was rattled this week by the Reserve Bank’s outlook for increasing interest rates — and therefore mortgage rates — even though the present reporting season has been positive.”

DGL Group, which listed in late May last year, stunned the local market by saying it will stop trading on the NZX on June 28. It will maintain a sole listing on the Australian ASX.

DGL Group was down a further 14c or 4.38 per cent to $3.06, after reaching a high of $4.50 on April 22.

Chorus was down 10c to $7.22;

Delegat Group declined 36c or 3.01 per cent to $11.60; Heartland Group Holdings decreased 4c or 1.84 per cent to $2.13; and Ryman Healthcare shed 25c or 2.42 per cent to $10.10.

Mainfreight was down 49c to $75.51; Restaurant Brands declined 17c to $11.73; Eroad fell 20c or 7.35 per cent to $2.52; and Pushpay Holdings shed 3c or 2.04 per cent to $1.44.

Vulcan Steel was down 16c to $9.52; Ventia Services Group declined 6c or 2.04 per cent to $2.88;

Trade Window fell 8c or 6.15 per cent to $1.22; and Chatham Rock Phosphate was trimmed 6c or 9.84 per cent to 55c.

Freightways gained 15c to $10.75; Ebos Group increased 35c to $39.90; Summerset Group Holdings collected 13c to $10.56; and Gentrack was up by 9c or 5.63 per cent to $1.69.

Meridian Energy, unchanged at $4.42, told the market the suspension of potline 4 at the Tiwai Point aluminium smelter has been extended to the end of September this year. Contact was down 9c to $7.37.