The US markets have experienced a stronger-than-expected corporate earnings season but they are anxiously waiting for the Federal Reserve’s next move on interest rates this week, particularly chairman Jerome Powell’s comment on the outlook for the economy.
Across the Tasman, the S&P/ASX 200 Index was up 0.39 per cent to 7334.7 points at 6pm NZ time.
Matt Goodson, managing director of Salt Funds Management, said the local market was very quiet and there was some nervousness ahead of New Zealand’s earnings season next month.
“The market drifted back from an inflated close the previous day,” he said. “The resource stocks in Australia were having a strong day, encouraged by Chinese government comments that it would help the struggling property sector and increase consumer demand.”
At home, Fisher and Paykel Healthcare was down 44c or 1.79 per cent to $24.08; Auckland International Airport retreated 14c to $8.23; Ebos Group declined 59c to $37.71; a2 Milk shed 7c to $5.48; and Spark decreased 5c to $5.055.
Energy stock Mercury was down 3.5c to $6.42, and Meridian – now the biggest local stock on market capitalisation – declined 3c to $5.49.
Hallenstein Glasson fell 22c or 3.37 per cent to $6.30; Michael Hill was down 2c or 2 per cent to 98c; Skellerup Holdings declined 17c or 3.7 per cent to $4.42; Radius Residential Care decreased 2c or 8.89 per cent to 20.5c; and Third Age Health shed 4c or 2.99 per cent to $1.30.
Other decliners were NZX falling 5c or 4.07 per cent to $1.18; Rakon shedding 3c or 3.85 per cent to 75c; MHM Automation giving up 2c or 2.33 per cent to 84c; Ventia Services down 4c to $3.31; and AFT Pharmaceuticals decreasing 4c to $3.66.
Carbon Fund fell 9c or 5.52 per cent to $1.54 with the market expecting a government announcement on its Emissions Trading Scheme review.
The strong run by 2 Cheap Cars stalled, declining 3c or 4.23 per cent to 68c.
Freightways collected 7c to $8.64; Comvita was up 6c or 1.94 per cent to $3.15; Kiwi Property gained 1.5c to 95.5c; and Winton Land rose 10c or 4.67 per cent to $2.24.
Vulcan Steel rebounded 43c or 5.33 per cent to $8.50; Oceania Healthcare was up 2c or 2.67 per cent to 77c ikeGPS gained 2c or 2.74 per cent to 75c; Black Pearl Group increased 3c or 5.26 per cent to 60c; and NZ Rural Land was up 2c or 2.22 per cent to 92c.
British technology company nChain is taking a 19.99 per cent holding in transport and logistics software firm TradeWindow for an $11.1m investment, representing 28m new shares at 0.3952c a share. TradeWindow’s share price rose 7c or 23.33 per cent to 37c.
The deal includes a $2.4m cash payment by nChain, and $4.7m worth of services and software products to enhance TradeWindow’s global trade platform over the next two years. As well, nChain will become TradeWindow’s exclusive distribution partner in Britain and Scandinavia.
Barramundi fund, which invests in Australian shares, reported a 7.2 per cent return in gross performance for the second quarter ending June, well ahead of the benchmark index’s 1.8 per cent return. Adjusted net asset value was up 6.6 per cent. Barramundi, down 1c to 71c, has now returned 16.1 per cent in the year so far.
Kingfish fund, investing in New Zealand shares, had a second-quarter return of 2.3 per cent in gross performance and adjusted net asset value return of 1.9 per cent compared with 3 per cent from the NZX 50 gross index. Kingfish’s share price declined 2c to $1.33.
Transport technology firm Eroad was unchanged at $1.44. It was reported that Volaris Group, owned by Toronto-listed Constellation Software, presently has no intention of increasing its takeover offer (at $1.30 a share), though it reserves the right to do so if there is a change of circumstances.
Former Eroad chief executive and shareholder Steven Newman has resumed his association, becoming the independent consultant to Eroad’s Technology Board committee.
