Market close: Energy stocks hit hard as sharemarket falls again

The energy sector took another hit. Contact Energy was among the decliners, falling 8c to $7.90. Photo / Supplied

Leading stocks, particularly those in the energy sector, were again hit hard as the misfiring New Zealand sharemarket opened the week with a 1 per cent fall.

The S&P/NZX 50 Index fell all day, and finished down 132.47 points or 1.04 per cent to 12,607.64 – its lowest level since the end of July.

There were 62 gainers and 84 decliners over the whole market on steady trading, with 36.01 million shares worth $146.38 million changing hands.

Matt Goodson, managing director of Salt Funds Management, said the market is soggy and dictated by the rising inflation and interest rates.

"The dividend yield and high-growth stocks are not doing so well now and interest will come back to the cyclical stocks with pricing power," he said.

"The market has priced in tightening moves by the Reserve Bank but I wouldn't be surprised if the bank this week increases the official cash rate by 50 basis points. It has to do that at some stage with inflation roaring ahead. It does make it tough for people trying to save."

Contact Energy declined 8c to $7.90; Mercury was down 3c to $5.75; Vector fell 11c or 2.74 per cent to $3.90, Genesis decreased 8c or 2.67 per cent to $2.92; and Meridian slid 11c or 2.38 per cent $4.52 – its lowest price since mid-July last year and under half the record $9.40 set on January 7 this year.

Meridian announced the sale of its Australian business for A$729m ($754m), with Shell Energy Operations taking over the Powershop retail operations and Infrastructure Capital Group owning the generation assets of two wind farms and three hydro schemes.

Market leader Fisher and Paykel Healthcare was down 54c to $31.06; Auckland International Airport shed 11c to $7.815; Spark declined 7c to $4.36; Freightways decreased 27c or 2.18 per cent to $12.10; and Ebos Group fell 48c to $35.72.

Retirement village operator Ryman Healthcare fell another 49c or 3.77 per cent to $12.50 and has fallen 8.6 per cent in the last two trading days.

Skellerup Holdings declined 23c or 3.72 per cent to $5.95; Port of Tauranga slumped 23c or 3.32 per cent to $6.7; Napier Port was down 9c or 2.86 per cent to $3.06; and Air New Zealand decreased 3c or 1.82 per cent to $1.62.

Other decliners were The Warehouse Group, down 8c or 2 per cent to $3.92; NZME shedding 4c or 2.96 per cent to $1.31; and Savor falling 2.5c or 4.81 per cent to 49.5c.

Among all the doom and gloom, transport and logistics software firm TradeWindow made a stunning debut on the market, climbing 78c or 84.78 per cent to $1.70 from its reference price of 92c (for a market vap of $79m).

There was no initial public offer and TradeWindow had a 10 for one share split among existing shareholders before listing. There were 256 trades worth $860,602, and in disclosure notices the ASB Bank holds 22.36 per cent, founder AJ Smith 17.17 per cent, Quayside Holdings 7.93 per cent and Holding des Mers du Sud 6.078 per cent.

(Read more in TradeWindow raises $15m from ASB, Anna Mowbray ahead of NZX listing.)

Dividend stock Chorus went against the interest rate trend, gaining 6c to $6.38. Mainfreight gained $1.35 to $91.35; My Food Bag was up 3c or 2.46 per cent to $1.25; and Rakon continued its meteoric rise, climbing a further 10c or 5.62 per cent to a new high $1.88.

Michael Hill International rose 5c or 4.07 per cent to $1.28; Scales Corporation was up 12c or 2.22 per cent to $5.52; PGG Wrightson increased 11c or 2.52 per cent to $4.47; and Allied Farmers gained 7c or 8.75 per cent to 87c.

Kiwi Property Group, up 1c to $1.15, produced an expected half-year result, reporting a 164 per cent increase in net profit to $143.23m including $93.6 property revaluation gain. Kiwi's revenue was $122.31m, up 9 per cent, and portfolio value is $3.5 billion including $1.16b for its shopping centres, Sylvia Park, LynnMall and The Base in Hamilton.

Refining NZ, soon to be renamed Channel Infrastructure NZ, gained 5c or 5.81 per cent to 91c after telling the market it will be become a fuel import terminal in April next year after operating as the country's only oil refinery for 60 years. The company has long-term supply agreements with BP, Mobil and Z Energy.

SkyCity Entertainment has appointed former Summerset Group Holdings chief executive Julian Cook as chair, replacing Rob Campbell who retires as a director on January 1. SkyCity's share price was down 4c to $3.18.

Metro Performance Glass was down 3.5c or 8.54 per cent to 37.5c after reporting a 94 per cent fall in net profit to $419,000 for the six months ending September because of the Covid lockdown and chain supply disruptions. Its revenue was steady at $116.9m and operating earnings (ebit) were $3m, down 76 per cent.