Jeremy Sullivan, investment advisor with Hamilton Hindin Greene, said Meridian makes up a decent chunk of the index and it has certainly been volatile over the past two days. “Meridian, and Contact, are in Clean Energy indices and passive investment funds can move stocks around.”
With the United States markets closed overnight for Labour Day, there were few offshore leads. But oil prices have increased nearly 20 per cent in the last six weeks - with crude oil presently trading at US$85.43 a barrel.
The ANZ World Commodity Price Index fell for the third consecutive month, dropping 2.9 per cent in August and led by an 8.7 per cent fall in dairy prices. Aluminium prices were 12 per cent lower over the past year.
Global shipping prices continued to ease, horticulture lifted with strong returns from kiwifruit, and meat and fibre were stable in August, with stronger beef returns offsetting lower returns for lamb and wool. Prices of wool were at their lowest level in 10 months.
ANZ Research said the Pre-election Economic and Fiscal Update, released on September 12, is expected to show a weaker activity outlook overall because of the deterioration in export prices and a weaker-than-expected starting point for gross domestic product.
ANZ said Treasury is likely to upgrade its house price forecast and that could bring some meaningful offsets via residential investment and private consumption. “A slightly rosier economic outlook than our own would not surprise on the day.”
Auckland International Airport was up 5c to $8.10 on trade worth $41.75m. UBS Group AG disclosed that it has a 5.7 per cent shareholding in the airport. Sullivan said UBS were the underwriters of the Auckland Council airport shares sale and were warehousing the (remaining) stock until it was on-sold.
SkyCity Entertainment steadied at $2.02 after reaching an intraday high of $2.15. SkyCity fell 13.3 per cent the day before when the company disclosed it was facing a possible suspension of its casino licence in New Zealand from the Gambling Commission.
Westpac declined 42c or 1.77 per cent to $23.37 after acknowledging Federal Court civil penalty proceedings by the Australian Securities and Investments Commission (ASIC), alleging contraventions under the National Credit Code and National Consumer Protection Act.
ASIC says because of a technology failure, 229 applications for hardship assistance submitted between 2015 and 2022 were not assessed within 21 days, as required under the Credit Code. Westpac had since contacted the customers and completed a remediation programme worth $900,000.
Fletcher Building was down 8c to $4.81; Ebos Group declined 87c or 2.31 per cent to $36.79; Mainfreight shed 46c to $65.88; Hallenstein Glasson decreased 16c or 2.62 per cent to $5.94; and Freightways gave up 13c to $8.47. Summerset Group went ex-dividend and was down 15.7c to $9.95.
Sanford declined 12c or 2.99 per cent to $3.89; Smartpay Holdings declined 6.5c or 4.02 per cent to $1.55; Winton Land was down 5c or 2.13 per cent to $2.30; Move Logistics shed 3c or 4.17 per cent to 69c; and Solution Dynamics fell 9c or 5.03 per cent to $1.70.
Sky TV was down 6c or 2.52 per cent to $2.32; Vista Group fell 10c or 6.17 per cent to $1.52; Scales Corp declined 7c or 2.26 per cent to $3.03; Channel Infrastructure decreased 2.8c or 1.8 per cent to $1.52; and AoFrio was down 0.008c or 10.26 per cent to 7c.
Eroad increased 9c or 6.92 per cent to $1.39; Briscoe Group gained 9c or 1.94 per cent to $4.74; Serko added 6c to $3.91; New Zealand Oil & Gas was up 1.5c or 4.05 per cent to 38.5c; and Comvita collected 5c to $3.20.
Property companies Investore was up 3c or 2.38 per cent to $1.29, and Argosy gained 2.5c or 2.17 per cent to $1.175.
Rua Bioscience, unchanged at 10.9c, told the market its product is now available to Australian patients on prescription and is being distributed by Anspec.
Fellow medicinal cannabis company Cannasouth increased 3.5c or 18.92 per cent to 22c. The Cannasouth board “commissioned an issuer-sponsored research report” from Sydney-based Pitt Street Research. Pitt Street valued Cannasouth at 34c (base case projection) and 43c (optimistic case).
Sullivan said Cannasouth had a negative cashflow and it’s a bit hard to value the company based on a discounted cashflow model.