Market close: Covid alert level news fails to ignite NZ sharemarket

Fisher and Paykel Healthcare, Mainfreight and a2 Milk dragged the sharemarket down. Photo / NZME

They were the saviours at the end of last week but Fisher and Paykel Healthcare, Mainfreight and a2 Milk this time dragged a muted New Zealand sharemarket down – despite strong indication that Auckland will reopen early next month.

The S&P/NZX 50 Index was unmoved by a further easing of restrictions for Auckland, falling further after the latest government announcement and closing at 13,041.3, down 33.31 points or 0.25 per cent. The index reached an intraday high of 13,106.54.

There were 78 gainers and 67 decliners across the whole market, and volume was light with 28.41million shares worth $126.95 million changing hands.

Shopping malls and retailers will open on Wednesday and outdoor gatherings of up to 25 people will be allowed as Auckland moves to alert level 3 step 2. And Prime Minister Jacinda Ardern suggested Auckland will reach the 90 per cent double vaccination level later this month, and the city is likely to move into the new Covid traffic light system after November 29.

"It looks like Aucklanders will be free by Christmas – you can't keep people locked up forever," said Jeremy Sullivan, investment adviser for Hamilton Hindin Greene.

"The market is still in a holding pattern, and is facing tailwinds and headwinds with rising interest rates. The lifting of Covid restrictions will help business and consumer sentiment."

For the year to date, the NZX gross index is down 0.1 per cent compared with the ASX 200 Index up 13.2 per cent and S&P 500 in the United States well ahead at 25.1 per cent.

Wall Street again closed at record highs at the weekend, boosted by a better-than-expected October jobs gain of 531,000 compared with the estimate of 450,000. But the Wall Street rally still doesn't fire up the local market.

Market leader Fisher and Paykel Healthcare was down 86c or 2.65 per cent to $31.60; Mainfreight declined $1.70 or 1.9 per cent to $88; and a2 Milk fell 21c or 3.15 per cent to $6.46.

Contact Energy was up 6c to $7.99 after launching its $200m green bond offer with a minimum rate of 4.15 per cent. The final bond rate will be determined following the bookbuild on Friday.

Trustpower increased 18c or 2.46 per cent to $7.50 after reporting a solid half-year result, with net profit rising 243 per cent to $115.12m on revenue of $675.15m, up 12 per cent. Operating earnings (ebitdaf) was up 11 per cent to $122.2m.Trustpower is selling its retail business to Mercury Energy for $441m, and is paying an interim dividend of 17c a share on December 3.

After the sale Trustpower will be renamed Manawa Energy concentrating on renewable generation, with 27 hydro schemes. It has confirmed operating earnings guidance of $210m-$225m for the 2022 financial year.

Vector is also considering a $200m six-year, fixed rate bond offer, and its share price declined 4c to $4.02.

Auckland International Airport was up 11c to $8.22 after also confirming a $100m five-year, fixed-rate bond offer. The margin and interest rate will be known on Wednesday following the bookbuild. Investors took further notice when the Sydney Airport board agreed to a US$17.5 billion ($24.6b) takeover from the Sydney Aviation Alliance consortium.

Meridian Energy rebounded 12c or 2.46 per cent to $4.99; Ryman Healthcare increased 12c to $14.49; Fletcher Building gained 6c to $7.22; Vista Group rose 10c or 3.92 per cent to $2.65; PGG Wrightson was up 5c to $4.40; Property for Industry picked up 6c or 2.08 per cent to $2.95; and Tourism Holdings collected 9c or 3.21 per cent to $2.89.

As the shops reopen, Hallenstein Glasson increased 14c or 2.02 per cent to $7.07, but Kathmandu Holdings was down 4c or 2.48 per cent to $1.57; and Michael Hill International declined 4c or 3.64 per cent to $1.14.

New listing Vulcan Steel continued its strong start to sharemarket life, rising 20c or 2.56 per cent to $8.

Foley Wines is also having a good run, increasing 3c or 1.8 per cent to $1.70. Scott Technology gained 7c or 2.24 per cent to $3.20; Geneva Finance increased 4c or 5.56 per cent to 76c; and NZ Automotive Investments rose 3c or 3.8 per cent to 82c.

Among the decliners, DGL Group shed 7c or 2.33 per cent to $2.94; Move Logistics fell 12c or 6.94 per cent to $1.61; and Just Life Group was down 3c or 3.57 per cent to 81c.

Millennium & Copthorne Hotels New Zealand's long-serving managing director BK Chiu is leaving the group in July next year after joining in 2005, and its share price was down 2c to $2.34.

Cannasouth's joint venture with Cannasouth Cultivation has commissioned its state-of-the-art, sealed controlled environment agriculture greenhouse and processing in the Waikato, and its share price increased 1c to 38.5c.