Heavyweights drag NZ sharemarket lower - Market close

The S&P/NZX 50 Index closed at 11,836.04, down 39.31 points or 0.33 per cent.

The New Zealand sharemarket declined for the 13th time in 16 trading days, dragged down by heavyweights Fisher & Paykel Healthcare and Ebos Group.

The S&P/NZX 50 Index fell at the opening after another weak day on Wall Street and was once again rescued with a rise in the end-of-day broker matching session. The index closed at 11,836.04, down 39.31 points or 0.33 per cent after reaching an intraday low of 11,730.98.

There were 66 gainers and 69 decliners on the main board with 29.28 million shares worth $117.33 million changing hands.

Paul Robertshawe, chief investment officer with Octagon Asset Management, said the market is adjusting to the (March quarter) consumers price index numbers and the disappointment that interest rate cuts may be pushed out past August.

“This means that companies, particularly those exposed to consumer spending, may have weaker earnings for a longer period, and there’s a rotation out of cyclical stocks. But it doesn’t feel like the market is in trouble,” he said.

In the United States, the technology-heavy Nasdaq Composite fell 1.15 per cent to 15,683.37 points, with Nvidia declining 3.87 per cent to US$840.35.

The S&P 500 dropped for the fourth successive day, down 0.58 per cent to 5022.21 points; and Dow Jones Industrial Average declined 0.12 per cent to 37,753.31, its seventh fall in eight trading days.

At home, Fisher & Paykel Healthcare was down 24c to $26.54; Ebos declined 63c or 1.82 per cent to $34; Freightways eased 13c to $8.65; and Mainfreight decreased 50c to $69.

Port of Tauranga reached a six-year low after declining 11c or 2.17 per cent to $4.95. Vulcan Steel, a volatile cyclical stock, fell 25c or 2.82 per cent to $8.60 on trade worth $12.82m.

In the energy sector, Meridian was up 8c to $5.84, and Contact was down 8c to $8.51.

Scott Technology declined 8c or 2.68 per cent to $2.90; Tower gave up 1.5c or 1.81 per cent to 81.5c; Heartland Group eased 2c or 1.85 per cent to $1.06; Vista Group shed 6c or 3.14 per cent to $1.85; and Eroad was down 3c or 3.41 per cent to 85c.

Chorus was down 12.5c to $7.38 after the Commerce Commission reduced its fibre expenditure allowances for the regulatory period January 1, 2025 to December 31, 2028. In its draft decision, the commission set operating expenditure at $691m and capital expenditure at $1.126 billion.

Chorus proposed operating expenditure of $840m and revised capital expenditure of $1.3b, down from $1.5b. Chorus told the market: “We acknowledge the commission’s acceptance of 87 per cent of our amended capital expenditure proposal but are disappointed by the draft decision on operating expenditure.”

The telecommunications network provider is reviewing the draft decision and will make a submission identifying the likely consumer outcomes of the proposed reductions.

Oceania Healthcare rose 4c or 6.67 per cent to 64c; Serko increased 12c or 3.57 per cent to $3.48; Turners Automotive gained 12c or 2.67 per cent to $4.61; Restaurant Brands collected 13c or 3.98 per cent to $3.40; and Hallenstein Glasson was up 11c or 1.93 per cent to $5.81.

PGG Wrightson gained 6c or 3.09 per cent to $2 after revising its operating earnings (ebitda) to $43m, from $50m, for the year ending June.

The rural services company said trading conditions had deteriorated since releasing its first-half results – with drought in some parts of New Zealand, weak sheep meat demand from China, and farmers and orchardists were reducing debt and deferring spending.

NZX, up 2c or 1.79 per cent to $1.14, told shareholders at the annual meeting that first-quarter revenue was up 14.8 per cent to $28.8m and operating earnings increased 23.5 per cent to $11.4m compared with the same period last year.

The market operator said it should comfortably deliver full-year earnings of $40m-$44.5m because of the business growth activities under way.

Pole monitoring software firm ikeGPS gained 2c or 4.65 per cent to 45c after reporting that revenue for the year ending March fell 31 per cent to $21.1m, with subscription revenue up 22 per cent to $10.7m and transaction revenue down 61 per cent to $7.3m

The company told the market it closed $27m worth of contracts in the 2024 financial year, including 59 subscription customers in the United States. Subscription revenue is expected to grow 50 per cent to $16m or more in the present financial year.

Transport and logistics software firm TradeWindow increased 1.6c or 8.47 per cent to 20.5c after chief executive AJ Smith sent a company update to shareholders as it completes a $2.2m capital raise.