Debt-laden Synlait Milk hits all-time low - Market close

Synlait Milk fell 4c or 5.33 per cent to 71c – its lowest level since listing in July 2013.

The New Zealand sharemarket was in a lacklustre mood and posted a near half per cent fall, with debt-laden Synlait Milk hitting a new all-time low.

The S&P/NZX 50 Index was on a gradual slide for most of the day and was again saved by a late rise in the matching session. The index declined 44.49 points or 0.37 per cent to 11,829.18 – its second successive fall this week.

There were 55 gainers and 78 decliners over the whole market on volumes of 26.53 million share transactions worth $96.43 million.

All eyes are on the United States February consumer price index (CPI) released overnight.

Paul Robertshawe, chief investment officer with Octagon Investment Funds, said it’s strange that people are buying perpetual investments on the sharemarket and they are worrying about a one-month CPI. “It just shows how volatile the markets are.”

He said the local market is soft and companies are out and about talking with investors and doing their normal roadshows post the reporting season.

In the United States, the Nasdaq Composite declined for the second day running as technology stocks came off the boil. The Nasdaq was down 0.41 per cent to 16,019.27 points.

Information technology stock Super Micro Computer fell 5.24 per cent to US$1080.22 and chipmaker Nvidia fell 2 per cent to US$857.74 as investors question whether stocks tied to artificial intelligence have more room to run after big rallies. Facebook’s parent company Meta declined 4.42 per cent to US$483.59.

At home, Synlait Milk fell 4c or 5.33 per cent to 71c – its lowest level since listing in July 2013. Synlait pushed out its half-year reporting date a week to April 2 and the market is waiting to see how it will reduce its debt.

The dairy company has a $130m repayment due on March 28 and it has $180m worth of NZX-listed bonds to repay in December. Synlait is also attempting to sell its Dairyworks cheese factory.

Freightways gave up its gain the day before and more, declining 42c or 4.79 per cent to $8.34 after DHL Group reported some weakness in its courier business.

Market leaders Fisher and Paykel Healthcare was down 15c to $24.40; Meridian Energy shed 13.5c or 2.29 per cent to $5.75; Ebos Group decreased 20c to $37.35; Mainfreight declined 77c to $67.32; and Fletcher Building fell 8c or 1.87 per cent to $4.19.

Skellerup Holdings declined 12c or 2.79 per cent to $4.18; Turners Automotive was down 11c or 2.3 per cent to $4.68; SkyCity gave up 4c or 2.08 per cent to $1.88; Vulcan Steel shed 29c or 3.45 per cent to $8.11; and The Warehouse decreased 4c or 2.99 per cent to $1.30.

Serko fell 9c or 2.2 per cent to $4; PGG Wrightson dropped 4c or 1.9 per cent to $2.06; NZ Rural Land Co was down 2c or 2.13 per cent to 92c; and Bremworth decreased 2c or 3.85 per cent to 50c.

Smartpay Holdings headed the gainers list, rising 7c or 4.83 per cent to $1.52. Auckland International Airport was up 10c to $8.26; Chorus gained 7.5c to $8.125; Contact Energy added 6c to $8.26; and Tourism Holdings added 5c to $3.41.

Michael Hill was up 2c or 2.82 per cent to 73c; Investore increased 2c or 1.85 per cent to $1.10; Green Cross Health improved 2c or 1.85 per cent to $1.10; Napier Port gained 4c to $2.44; AFT Pharmaceuticals collected 5c to $3.18; and Scales Corp added 5c to $3.10.

Air New Zealand, down 0.005c to 59c, will pause its Auckland – Chicago non-stop service from April to November because of the availability of serviceable Rolls-Royce Trent 1000 engines which is impacting airlines around the world.

The pause of two or three services a week is not expected to impact Air New Zealand’s full-year guidance.

Kiwi Property, unchanged at 85c, made a presentation on its 295 Resido build-to-rent apartments next to the Auckland Sylvia Park shopping centre, due to open in early May.