Another down day makes it five in a row
The New Zealand sharemarket chalked up its fifth down day in a row, with jewellery retailer Michael Hill providing a warning of a drop in earnings because of challenging trading conditions.
The S&P/NZX 50 Index slipped in the afternoon and closed at 11,666.07, down 21.11 points or 0.18 per cent after reaching an intraday high of 11,737.56.
The index fell 1.6 per cent for the week. There were 73 gainers and 51 decliners on the main board yesterday, with 34.2 million shares worth $101.2m changing hands.
David McConnochie, investment adviser with Forsyth Barr, said the local market had reflected the mixed performances overseas.
He said interest rates were still holding investors’ attention — wholesale swap rates have crept up — and there is a stand-off between the markets and central banks over when they will start cutting official cash rates.
The United States and Australian markets have also had a run of down days but suddenly picked up. On Wall
Street, the technology stocks reignited and the Dow Jones Industrial Average was up 0.54 per cent to
37,468.61 points; the S&P 500 increased 0.88 per cent to 4780.94; and the Nasdaq Composite rose 1.35 per cent to 15,055.65.
Across the Tasman, the S&P/ASX
200 Index had risen 0.99 per cent to
7419.2 points at 5.45pm NZ time after five successive down days.
At home, Michael Hill was down 1c to 95c after expecting first-half earnings before interest and tax to be $30m-$33m compared with $54.4m in the previous corresponding period and gross margin in the range 61-62 per cent, down from 65.2 per cent.
Ryman Healthcare was down 13c or 2.22 per cent to $5.72; Summerset gave up 16c to $10.45; Port of Tauranga declined 10c or 1.82 per cent to $5.40; Tourism Holdings decreased
10c or 2.7 per cent to $3.60; Comvita shed 5c or 2.08 per cent to $2.35; and
Restaurant Brands was down 7c or
1.79 per cent to $3.85.
In the interest rate-sensitive energy sector, Meridian was down 9c to $5.46; Contact declined 8c to $7.96;
Mercury shed 11c to $6.41; and
Manawa was up 5c to $4.35.
New Zealand Rural Land Company rose 6c or7.06 per cent to 91c after announcing it has sold 25 per cent of its portfolio to Australian investment manager Roc Partners for $44.2m. Some of the money will be used to repay the $11.8m owing on a convertible note.
NZ Rural’s owner Allied Farmers increased 5c or 6.25 per cent to 85c. Fletcher Building increased 10c or 2.15 per cent to $4.75.