Market close: Energy, property sectors drag market lower

The S&P/NZX 50 Index tumbled in the afternoon after a steady morning’s trading and closed at 11,531.3, down 33.45 points or 0.29 per cent. Photo / NZME

The New Zealand sharemarket was weighed down by weakness in the energy and property sectors while offshore investors were more hopeful that the banking sector had settled.

The S&P/NZX 50 Index tumbled in the afternoon after a steady morning’s trading and closed at 11,531.3, down 33.45 points or 0.29 per cent. The index reached an intraday high of 11,577.73 points.

There were 64 gainers and 66 decliners over the whole market on steady volume of 30.67 million share transactions worth $111.51 million.

Matt Goodson, managing director of Salt Funds Management, said the New Zealand market was dramatically lagging Australia - which is having a relief rally following the collapse of US banks SVB and Signature, and the uncertainty around First Republic.

“There doesn’t look to be contagion to the rest of the financial sector, but with liquidity being strained it may result in a pause in the US Federal Reserve quantitative tightening,” he said.

Most analysts now expect the Federal Reserve to raise interest rates 25 basis points when it makes its next announcement on Thursday morning NZ time.

Wall Street also rallied overnight, with the Dow Jones Industrial Average rising 1.2 per cent to 32,244.58 points; S&P 500 up 0.89 per cent to 3951.57; and Nasdaq Composite gaining 0.39 per cent to 11,675.54.

Across the Tasman, the S&P/ASX 200 Index had risen 0.9 per cent to 6960.8 points at 6pm NZ time. The dual-listed banks are bouncing back, ANZ gaining 45c or 1.86 per cent to $24.58, and Westpac rising 97c or 4.31 per cent to $23.49.

At home, the energy sector in the NZX 50 was down 0.68 per cent and the real estate declined 0.77 per cent. Property stocks on both sides of the Tasman are trading at 20 to 30 per cent below their net tangible asset values.

Contact Energy fell 16c or 2.11 per cent to $7.42; Meridian declined 10c or 1.94 per cent to $5.05; and Manawa was down 8c to $4.81.

Goodman Property Trust, down 3.5c or 1.7 per cent to $2,025, told the market it expects a $238m or 4.7 per cent reduction in the valuation of its $4.8 billion portfolio for the 2023 financial year ending March.

Property for Industry declined 2.5c to $2.20, and Precinct Properties decreased 1.5c to $1.255.

Ebos Group shed 44c to $44.47; Mainfreight decreased $1.33 or 1.93 per cent to $67.67; Spark was down 6c to $4.84; Napier Port declined 6c or 2.22 per cent to $2.64; and Restaurant Brands fell 20c or 3.13 per cent to $6.20.

Market leader Fisher & Paykel Healthcare was up 27c to $25.15; Auckland International Airport gained 12c to $8.82; Fletcher Building added 5c to $4.29; and Chorus collected 6c to $8.

The strong run by Fonterra Shareholders’ Fund ended with a fall of 18c or 5.07 per cent to $3.37.

Synlait was down a further 19c or 7.01 per cent to $2.52, and a 2 Milk declined 8c to $6.25, falling from $7.40 two weeks ago.

Retirement village operators Ryman Healthcare decreased 9c to $5.03, and Arvida Group was down 2c or 2.02 per cent to 97c.

Retailers Briscoe Group declined 11c or 2.24 per cent to $4.80; Hallenstein Glasson was up 3c to $5.35; and KMD Brands gained 1c to 99c on the eve of reporting its latest financial result.

Other decliners were Scales Corp down 10c or 3.23 per cent to $3; Serko decreasing 7c or 2.92 per cent to $2.33; Smartpay Holdings shedding 3c or 2.56 per cent to $1.14; Eroad falling 5c or 6.25 per cent to 75c; and Winton Land down 5c or 2.5 per cent to $1.95.

NZME was down 4c or 3.85 per cent to $1; AFT Pharmaceuticals fell 14c or 4 per cent to $3.36; Gentrack declined 10c or 3.61 per cent to $2.67; and Green Cross Health decreased 3c or 2.14 per cent to $1.37.

Skellerup Holdings rebounded 18c or 3.73 per cent to $5; SkyCity was up 5c or 2.16 per cent to $2.36 per cent; Steel & Tube improved 3c or 2.63 per cent to $1.17; Rakon rose 5c or 5.88 per cent to 90c; My Food Bag added 2.5c or 12.5 per cent to 22.5c; and ikeGPS collected 3c or 3.53 per cent to 88c.